Review: MEASURING VOLATILITY & BOLLINGER BANDS
Rating: 4 out of 5
Date: 06 18, 2014
Bollinger Bands were created by John Bollinger in the 80’s.  Today they are one of the most widely used tools in technical analysis.  Bollinger Bands measure a stocks volatility in relation to a central trend normally its 20-day moving average.  Every stock will have a Middle band that measures the central trend and an Upper & Lower which measure a certain amount of standard variations from the central trend.  The theory is that when a price moves outside of the Upper & Lower bands it tends to head back to the middle.This trading tool is helpful in determining exit & entry points.  No indicator is perfect and Bollinger Bands can provide its share of false alarms but mastering the complexities of bands is a great way to up your game as a professional trader.  Once again I felt that Wilson took the wrong approach by trying to cover too many aspects of a complex subject in a short time frame.  A good read but I felt it could have been better.