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Bollinger Band is one of the most powerful technical indicators that was developed by John Bollinger in the 1980s. This indicator can easily help you to identify the potential trends, reversals and volatility of the security, In this article, I will explain how you can place profitable trades using Bollinger Bands on the Quotex trading platform.
About Bollinger Bands
- As said above, Bollinger Bands is a technical indicator that was developed by John Bollinger in the 1980s.
- This indicator is made up from the composition of three lines upper line, lower line, and middle line.
- The middle is a simple moving average (SMA), while the upper and lower lines are standard deviations of the price from the SMA
- These three lines act as Support & Resistance levels for the price. Support and Resistance are the pre-assumed price levels that act as the barrier to the price and from here the price usually bounces back up or down.
- The indicator lines also helps traders to measure price volatility which changes with the price. When the bands are close together, it indicates low volatility, while wider bands indicate higher volatility
How to configure Bollinger Bands on the Quotex Trading platform
In order to add the Bollinger Bands on the Quotex chart. Follow the steps given below.
- Firstly, Login to your Quotex account. In case, you don’t have one click here.
- Once, you signed up. Open the chart and select your default chart as candlestick.
- Next, Click on the “Indicators” button and search for the Bollinger Bands indicator in the list.
- Select “Bollinger Bands” from the list of indicators. and configure the indicator as per your requirements.
- Once, you have configured it correctly. click on apply and the indicator will be added to the chart.
How to trade with Bollinger Band on Quotex
Trading with the Bollinger band indicator on Quotex is very easy and simple you just need to watch the price near the two bands. When the price or the candle is near or touching the lower band it signals an upcoming bullish trend vice versa when the price or candle is near or touching the upper band it signals an upcoming bearish trend and here you can place a sell trade.
As you can see above the price is touching the upper band. here we can consider placing a sell trade as it signals an upcoming bearish trend.
Similarly, you can see above the price is touching the lower band. here we can consider placing a buy trade as it signals an upcoming bullish trend.
You must be wondering what about line 50 right? well, line 50 is mostly used by traders to place 1 or 2 minutes trades.
When the price is coming from the lower band and intersects the middle band with an uptrend here, you can use this opportunity to place 1-minute buy trade.
Similarly, when the price is coming from the upper band and intersects the middle band with a downtrend here, you can use this opportunity to place 1-minute sell trade.
So, this is the end of this article. I hope you have found this article useful. Try this strategy on the Quotex demo account and you will get $10000 with a 50% bonus.