How do Bollinger Bands work?

Bollinger Bands typically use a 20-period moving average, where the "period" could be 5 minutes, an hour or a day. By default, the upper and lower bands are set two standard deviations above and below the moving average. However, traders can customize the number of periods in the moving average as well as the number of deviations.

What is the best timeframe for Bollinger Bands?

The best timeframe for Bollinger Bands is on an hourly chart or daily chart. Hourly charts produce a 47% success rate, and a daily chart, defined in our Winning Bollinger Bands strategy, produced a 55% success rate. How reliable are Bollinger Bands? Bollinger Bands is an unreliable technical analysis chart indicator.

What is the default setting for Bollinger Bands?

The default setting for Bollinger Bands is a 20-day SMA with upper and lower bands that are two standard deviations away from the SMA. However, you can adjust the settings to fit your trading strategy by changing the period, standard deviation, and SMA type. When interpreting the Bollinger Bands, there are a few key things to keep in mind.