Bollinger Bands Strategy Summary

Bollinger Bands indicator is a popular technical analysis indicator that can be used in various ways.

However, like most indicators it should not be used alone. Bollinger bands indicator work best combined with overbought & oversold indicators and oscillators.

Since Bollinger Bands uses price volatility to determine the market trend, traders should not use indicators that duplicate this information. Instead the Bollinger bands indicator should combined with indicators that measure volume or momentum.