The Bollinger Band indicator gained its fame back on Wall Street. It shows the volatility of a particular asset.
The indicator consists of three lines:
– Simple moving Average;
– The upper band;
– The lower band.
In Veles, you can select the timeframe for the indicator, as well as use the “Reverse signal” option.
As soon as the closed candle on the selected timeframe crosses the lower boundary of the Bollinger, this is a “Buy”-signal. It may be used to open a deal for a Long-bot, or to close a deal for a Short-bot.
As soon as the closed candle crosses the upper boundary of the Bollinger, this is a Sell-signal. Use it to open a deal with a Short-bot or to close a deal with a Long-bot.
If you trade using the Bollinger Bands indicator, you only need to have 1 indicator. Please do not forget to use “Minimum PnL” check when you close your deals by a signal.
We can say with certainty that this is an amazing indicator and it has repeatedly confirmed its reliability over the years.
