Bollinger bands - Sophia Trades - Learn how to Trade the Stock Market

In this article i’m going to give you some simple instructions on how to add the Bollinger Bands indicator in Trading View. Let’s jump straight into it!

First of all, what is Trading View?

Trading View is a chart package which you can subscribe to. It’s the best one I have ever used. I’m still using it in my own trading – any screen shots I take in the ‘Chart Analysis’ section of my blog, are taken from my Trading View chart package:

Chart analysis – Sophia Trades – Learn how to Trade the Stock Market

Trading View is extremely intuitive as a chart package. You can filter and sort your watchlists in exactly the way you would like to – adding flags, sections – anything that can help with keeping your watchlists organised.

It allows you to log into many different brokers, and I have three different accounts of my own, hooked up on Trading View.

You can set alerts and have it email you when the price reaches a certain position or when particular scenarios occur in relation to your indicators.

I can offer users of my blog, a discount to this amazing software – just click the link below:

Get Trading View discount here

Where is the Bollinger Bands indicator in this chart package?

You can find the indicators by going to the indicators tab at the top of the charts. When you click on this tab, you will get a list come up of hundreds of different types of indicators. You can find the Bollinger Bands indicator by typing in the search box, “Bollinger Band”. You will see the indicator appear. Note there are many different versions so you want to select the plain default version – people are building their own indicators in there so you want to avoid any that you are not familiar with:

Here is what the plain default indicator looks like:

As you can see, my Bollinger Band indicator is in my favourites as this is one of the key indicators I use when implementing my strategy.

Once you have applied this indicator to your chart, you can tailor its settings by following the instructions in a related blog article. Please see the Trading View or Bollinger Bands sections of the blog:

Best software reviews – Sophia Trades – Learn how to Trade the Stock Market

Technical indicators – Sophia Trades – Learn how to Trade the Stock Market

I hope you found this article helpful!

Disclaimer!

Nothing on this blog should be taken as financial advice or encouragement for you to enter a trade. You are expected to speak to a financial adviser or carry out your own due diligence before entering any positions. Everything on this blog is made for educational purposes and to equip you with the knowledge you need to be able to make your own financial decisions.

For more great tips and advice on trading the stock market, please visit:

https://www.sophiatrades.co.uk

To watch me trade live please visit my patreon page here:

https://www.patreon.com/sophiatrades

Finally, if you would like to receive a discount on the Trading View charting software I use, please click on the relevant link here:

https://www.tradingview.com/?aff_id=117138

Please note any subscriptions taken via my affiliate link with Trading View may result in me earning a small commission. However, I provide complete transparency on me using Trading View personally – I publish my success on the financial markets via my broker reports and any profits earned were done so by using my own Trading View subscription, so I genuinely do recommend them and have been using the Trading View charts for many years.

In this article i’m going to talk about how to use Bollinger Bands for day trading. I’m going to talk about how you can use this technical indicator to give you entry and exit signals, and to show you levels where the price is overbought or oversold. Let’s get straight into it!

How to use Bollinger Bands for Day Trading… but first, what are Bollinger Bands?

Bollinger Bands is a technical analysis tool which was developed by John Bollinger. They can measure market volatility and determine, relatively, whether prices are high or low. The way they work is they contain a simple 20 period moving average (“SMA”), and two outer lines (bands) which are a standard deviation away from the 20 SMA, of + or – 2. The bands expand and become wider around the 20 period SMA at times of high volatility and contract at times of low volatility. This is what the bands look like:

I have shown you what they look like here, using my favourite Trading View platform. If you would like a discount to this software, click the button below!

Get Trading View discount

OK, so as you can see on the above chart, there is a line at the top, a line in the middle and a line below. The top and bottom lines are + and – 2 standard deviations away from the centre SMA line. You can change the settings of the bollinger bands, to use a slightly different SMA period for example, by clicking on the settings, in Trading View, here:

It’s sometimes best to use the default settings – set to 20 period SMA with 2 standard deviations. I have changed the colours on my Trading View charts, because I like using dark mode and the bands show up here, a bit more by changing them to white, light green and light orange.

How can you use Bollinger Bands for entry signals?

So lets talk about how to use Bollinger Bands for Day Trading…With Bollinger Bands you can buy the market when the price goes to or dips down below the lower band, and enter a take profit when it reaches the top band.

Similarly, you could sell when the price is at the top band, and then buy back on a short, when the price reaches the bottom band.

You can also use the bands to follow trends by entering and then waiting for the price to ride up the bands.

How to avoid false signals with Bollinger Bands?

You can avoid false entry signals by confirming the entry with another indicator such as the RSI. To learn about the RSI indicator please see the link below:

RSI Indicator – Sophia Trades – Learn how to Trade the Stock Market

I hope you found this article helpful.