We have talked about the Bollinger Bands before and how you can use the technical indicator to predict market movement. In this part, we are going to explore this particular technical indicator and see more ways to predict market movement using the Bollinger Bands. Let’s get started, shall we?

This next forex trading tip we are going to discuss is called the Bollinger Squeeze. The setup is pretty much similar to Bollinger Bounce. First, you need to set the Bollinger Bands on your chart and observe market movement as well as volatility. It is very important to take your time and be patient, because you need to have proper market understanding before you can execute Bollinger Squeeze effectively.

As the market volatility becomes lower, you will see the chart is ‘squeezed’ by two Bollinger Bands. This is exactly what we call the Bollinger Squeeze. The only thing you need to do next is watch closely for breakouts towards any direction. If you do, and the Bollinger Bands expand as price breaks, you can expect larger movements towards the same direction.

There are several ways you can confirm the movement and make this particular trick superbly effective. The best way is to trade multiple timeframes and have Bollinger Bands properly set up on both charts. You can also use other indicators including volume indicator and moving average (use different periods for confirmation) to predict the movement accurately. Simply enter the market with the right position and you will be banking pips before you know it.

There are a lot of forex trading indicators available on online trading platforms and software. When combined and used properly, you can actually use these indicators to decide – and confirm – the right move to make as well as the right time to enter the market based on the situation you are dealing with. In this article, we are going to discuss about Bollinger Bands and how you can use a simple trick called Bollinger Bounce to confirm the right move to make towards the market.

Bollinger Bands are indicators used to measure market volatility. There are a lot of advantages you can get from understanding market volatility for sure. For example, you can predict just how far the market will go towards any direction and adjust your trading position accordingly. When applied in a trading system, Bollinger Bands can help you accomplish many things and bank a lot of pips along the way.

One of the most famous tricks when it comes to the use of Bollinger Bands is of course the Bollinger Bounce. This trick is actually very simple. With the Bollinger Bands properly set on your chart, you can observe the cart’s movement and catch possible movements easily. If the chart hits upper Bollinger Bands indicator, it is almost certain that the next move the market will make is downward. On the contrary, upward movement is to be expected if the chart cross lower Bollinger Bands indicator. You can see how easy yet effective the Bollinger Bounce is, can’t you?

Forex trading is a very exciting world, and can be a superb source of money if you know what you are doing. Different traders use different trading system in order to stay profitable and make a lot of profits in the process, but almost all of them – myself included – trade multiple timeframes. Why? That is exactly what we are going to discuss in this article.

The first benefit of trading multiple timelines is confirmation. It is very easy to confirm a trend if you are observing charts with different timeframes. If you see a sharp movement in charts with shorter timeframes while the ones with longer timeframes are showing movements towards the same direction, you can actually confirm the trend and quickly enter the right position to bank pips.

Another great benefit of trading multiple timeframes is better risk management. Since you can easily see the larger picture when trading with multiple timeframes, you can also choose the right risk management technique to safeguard your margin and stay profitable at all times.

Last but certainly not least, those of who trade mainly on technical indicators can also use multiple timeframes as part of your trading system in order to ensure indicators’ accuracy. You need to be able to make the right decision quickly if you want to bank pips and score profits, and the best way to do that is by viewing carts with long and short timeframes dynamically.

Now that you know just how important trading multiple timeframes can be, you should start incorporating this trading trick into your existing trading system.

Moving average, in this case simple moving average, is a great technical indicator to use when you want to predict forex movements. Simply combine the simple moving average with other technical indicators including oscillators and volume indicators and you have one reliable trading system for sure. The problem with simple moving average is its simplicity; it is often affected by spikes. If you want to eliminate these spikes and get accurate moving average reading, exponential moving average is exactly the technical indicator you need.

The main different between simple moving average (SMA) and exponential moving average (EMA) is weighing. EMA adopt a certain weighing system that makes the read even more accurate and representative. If you are using a 5 period EMA on a daily chart, for example, the last three days are considered more influential. If you have spikes during the first and second day, the EMA will not be affected. If a drastic movement happened on the third or fourth day, you will see the EMA reacts accordingly and tell you what the possible future movement is going to be.

Just like with SMA, you can’t really use EMA independently. You must first combine different periods of EMA to get a clear read depending on the pair you are trading. A combination of 5, 7, and 14 periods of EMA is commonly used, although it is just a matter of preference and trading system. You must also add other technical indicators to get clear reads and predict future movements accurately.