One simple and convenient indicators to analyze the market today are the Bollinger band. They were invented by the well-known analyst of financial markets - by John Bollinger. John Bollinger himself at this time is a technical analyst, founder and president of BCM Inc., Which specializes in asset management industry finance corporations and individuals.
Brought him fame, and his so-called "Bands Bollidzhera" that are recognized and are still used in many computer programs.
Bollinger bands are outwardly very similar to the percentages envelopes moving average line. If the protsentazhe, that is moving in an envelope outside the boundaries established by the direct line of traffic moving average up and down to a reasonable value, denoted as a percentage, the Bollinger Bands, this stretch of the shift is not constant and is expressed in a different number of standard deviations of the price.
The central bar, located in the middle, is a moving average. It is built from it and come Bollinger up and down. Distance bands from the central moving average is controlled by a coefficient which is multiplied by the deviation of the standard form. Because the extent of deviation depends directly on the volatility, in this case, the strip-adjusting themselves: it increases the volatility of the market, and is smaller in less volatile periods.
Brought him fame, and his so-called "Bands Bollidzhera" that are recognized and are still used in many computer programs.
Bollinger bands are outwardly very similar to the percentages envelopes moving average line. If the protsentazhe, that is moving in an envelope outside the boundaries established by the direct line of traffic moving average up and down to a reasonable value, denoted as a percentage, the Bollinger Bands, this stretch of the shift is not constant and is expressed in a different number of standard deviations of the price.
The central bar, located in the middle, is a moving average. It is built from it and come Bollinger up and down. Distance bands from the central moving average is controlled by a coefficient which is multiplied by the deviation of the standard form. Because the extent of deviation depends directly on the volatility, in this case, the strip-adjusting themselves: it increases the volatility of the market, and is smaller in less volatile periods.