Where Should I Place a Stop Loss Indices Order using Bollinger Bands Indices Indicator?

How to Set a Stop Loss Indices Order using Bollinger Bands Indices Indicator

Bollinger Bands Indices Indicator

Bollinger bands stock indices indicator use standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.

Bollinger Bands consist of 3 bands designed to encompass the majority of a trading instruments stock indices price action. The middle band is a basis for the intermediate term trend, typically it is a 20-period 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.

Since these Bollinger bands are used to encompass the trading instrument stock indices price action, the bands can be used to set stop losses just outside the area of the bands.

How to Set a Stop Loss Indices Order using Bollinger Bands Indices Indicator