Quick Look at Bollinger Bands

Quick Look at Bollinger Bands
Bollinger bands is a band-like analysis
Alpha Beta trend. It can be used as the system itself or with oscillators such as Relative Strength Index (RSI). The analysis is standard in both Reuters Stuttgart (RTA) and Reuters Technical Analysis for Unix

Interval that is closed under the bottom band, followed by another that closes within, may Bollinger Bands signal a reversal and a good time to buy.
If prices in a downtrend and back in the bands, this is interpreted as a signal of the current Bollinger Bands downward trend will continue and that the market will move sideways and then probably come back.
Bollinger bands formed area of ​​support and resistance. I use to take profits. If prices break above or below the bands, it results in change support and resistance.
Trend reversals can be verified when used with an oscillator such as Relative Strength Index (RSI). Bollinger Bands Signals, such as:
Bollinger Bands Price to be close to the lower band with RSI confirms the trend reversal should be safe buying signal.
Price Bollinger Bands divergence with RSI can confirm the top or bottom of the band (see Fig. 1).
A final point - as any other technical analysis technique, the trader must incorporate their own personality and comfort levels of trade rules Bollinger bands.