Chapter 4  Using Double Bollinger Bands to Gauge Trends

In the last sections, we have talked about how to use (single) Bollinger Band to find entry time and get profit. Here we will introduce another method from Ms Kathy Lien to find buy zones and sell zones. This good technique for the bollinger bands indicators is called the DBB - Double Bollinger Bands strategy.

Here are the pictures to show how to apply it on your chart.

Using Double Bollinger Bands to Gauge Trends-Pic no.1

Using Double Bollinger Bands to Gauge Trends-Pic no.2

When the chart has been set up, we need to mark the zones next.

Using Double Bollinger Bands to Gauge Trends-Pic no.3

(EURUSD 4H Chart)

●A1: The upper BB (Bollinger Band®) line that is two standard deviations away from line X, which is the 20-period simple moving average (SMA)

●B1: The upper BB line that is one standard deviation from the 20-period SMA

●X: The 20-period SMA of the H4. This serves as both the center of the DBBs, and the baseline for determining the location of the other bands

●B2: The lower BB line that is one standard deviation from the 20-period SMA

●A2: The lower BB line that is two standard deviations from the 20-period SMA

These bands represent four distinct trading zones used by traders to place trades.

●The Buy Zone is between lines A1 and B1

●The Neutral Zone 1 between lines B1 and X

●The

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