# Setting Up Bollinger Bands Indices Indicator Expert Advisor

Indices Bollinger Bands Indicator Indices Expert Advisor Setup - Setting Up Bollinger Bands Indicator Indices Expert Advisor - A Indices trader can come up with a Bollinger Bands Indicator Indices Expert Advisor based on the Bollinger Bands Indices Indicator explained below.

Indices Bollinger Bands Indices Indicator Expert Advisor rules can be combined with other indices indicators to come up with other EA Indices Trading Robots that trade using rules based on two or more indicators combined to form a stock indexes trading system.

## Bollinger Bands Indices Technical Analysis and Bollinger Bands Indices Trading Signals

Developed by John Bollinger.

This indicator serves three primary functions:

- Provide a relative definition of high and low
- Show periods of high and low volatility
- Identify periods when indices prices are at extreme levels

Bollinger Bands do this by using standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the bands are self-adjusting; they widen during periods of higher volatility and contract during periods of lower volatility.

This indicator consist of 3 bands designed to encompass the majority of a trading instrument's stock indexes price action. The middle band is a basis for the intermediate-term Indices trend, typically a 20-periods simple moving average, which also serves as the base for the upper and lower bands.

The upper band's and lower band's distance from the middle band is determined by volatility. Typically, the upper band is drawn +2 standard deviations above the middle band while the lower band is drawn -2 standard deviations below the middle band.

## Interpretation

Bollingers are usually calculated using the trading instrument's indices prices and they have the following characteristics.

- Sharp stock indexes price changes tend to occur after the bands tighten as volatility lessens, this is known as the Bollinger Bands Squeeze.

- When indices prices move outside the bands a continuation of the current indices trend is implied.

- Bottoms and tops
**made outside**the bands followed by bottoms and tops**made inside**the Bollinger Bands respectively, call for reversals in the Indices trend.

- A move that originates at one band tends to go all the way to the other band.

Indices Stochastic Oscillator Indices Indicator Expert Advisor Setup

## Indices Trend Identification

This technical indicator is used as a indices trend following indicator since it shows the general direction of the Indices trend.

If the indices trend is upwards the middle and the lower bollinger provide excellent points for opening a buy indices trade, these levels act as support levels.

In a down indices trend the middle and the upper bollinger provide excellent points for opening a sell indices trade. These levels are used as resistance levels.

The outer levels are also commonly used to set stop loss levels above or below these outer levels bands.