ADVANTAGES AND DISADVANTAGES OF THE BOLLINGER BANDS INDICATOR
Analytics & Forecasts

ADVANTAGES AND DISADVANTAGES OF THE BOLLINGER BANDS INDICATOR

27 July 2024, 11:21
Evgeny Belyaev
Evgeny Belyaev
0
123

Advantages

  • Bollinger Bands are visually easy to interpret
  • They can be used both as a volatility indicator and a momentum oscillator
  • Bollinger Bands can be applied on any underlying asset across any time frame
  • The indicator generates signals that not only provide precise entry levels, but also specify stop loss and take-profit zones

Disadvantages

  • Bollinger Bands work better in sideways markets than in trending markets
  • While it is possible to identify extreme price readings with Bollinger Bands, they are not ideal for this purpose
  • Even though Bollinger Bands can trigger their own signals, it is important to use these signals in concurrence with other aspects of technical analysis

If you don't like the standard Bollinger Bands, you can try the Exclusive Bollinger.

Exclusive Bollinger for MetaTrader 4 : https://www.mql5.com/en/market/product/24336

Exclusive Bollinger for MetaTrader 5 : https://www.mql5.com/en/market/product/25318

All my developments: https://www.mql5.com/en/users/genino/seller


#Bollinger Bands, signal, momentum oscillator, entry levels, take-profit