“Day One: A Practical’ Introduction to Bollinger Bands ATIC, Singapore, 2010 John Bollinger, CFA, CMT | je Trading Bands | Define high and low on a‘relative basis By definition: —Prices are high at the upper band _ | =Prices are low at the lower band Copyight 2010 Bolinger spt ManagorentBollinger Bands + First publishédiin,1983 + Use volatility to set,the'width of the bands The Beginning Trading bands},Price envelopes formed by projecting a moving’average some interval above and below itself | Most popular: Percentage bands — Middle band = moving average — Upper band = middle band * (1 +n) — Lower band = middle band / (1 + n) — where n = the desired percentageThe Problems fm Proper parameters are hard to determine — And change from ‘data series to data series — And change from time to time Most important — Fitting bands by eye allowed emotions to __ creep into the trading process