Bollinger on Bollinger Bands

by John Bollinger

John Bollinger is a giant in today’s trading community. His Bollinger Bands sharpen the sensitivity of fixed indicators, allowing them to more precisely reflect a market’s volatility. By more accurately indicating the existing market environment, they are seen by many as today’s standard―and most reliable―tool for plotting expected price action. Now, in Bollinger on Bollinger Bands , Bollinger himself explains how to use this extraordinary technique to compare price and indicator action and make sound, sensible, and profitable trading decisions. Concise, straightforward, and filled with instructive charts and graphs, this remarkable book will be essential reading for all serious traders, regardless of market. Bollinger includes his simple system for implementation, and techniques for combining bands and indicators.

Genres: Finance, Business, Nonfiction, Economics

227 pages, Hardcover

First published July 27, 2001

Reviews

[John Boettcher · Rating 3 out of 5]

A decent expose by the author on the very metric he created. Technical analysis still continues to be one of the most widely followed discipline for traders, although sometimes it seems like they fit their own theories to fit the data, rather than the other way around. This book is no different. Bollinger will show you all the charts in which his system works perfectly and none that don't.

[Rohith]

Best book on bollinger bands n trading

Every one connects with one tool in their trading life. Mine is Bollinger Bands. They are awesome. And this book has a very valuble info on this tool. Of course its from the person who created the bands himself. Master this and you can survive the trading career. This book is equally useful for both investors and traders. .

[Javier Villar · Rating 4 out of 5]

Bollinger bands are useful and versatile tools. A lot of creative ways to use them in this book.

[Ashim Sharma · Rating 4 out of 5]

Overall a good and interesting read. The book is definitely not for a beginner technical analyst. John Bollinger assumes you have looked at charts for many years and lost a lot of money doing so. He then offers his perceptual filter with which to view market’s price action:

- A 20period sma +/- 2 standard deviation bands around the 20period sma
- %B and Bandwith Indicator
- A volume or a momentum indicator

As far as I understood it, the bb determines the relative high and relative low in the system but that doesn’t mean a tag on the lower band is a buy and a tag on the upper band is a sell. In fact since volatility cycles correlates with momentum cycles, you actually want to buy when tags to the upper band if price emerges from a volatility squeeze in a trending market. Once you add momentum or volume indicator to the mix of price action within the bb, you start looking for confirmation and divergences to signal trend emergence, trend continuation or mean reversion.

Bollinger guides you through these cocktail of idea using three setups:
1) vol breakouts
2) trend following
3) intermediate price reversals

The book also encourages and points you in the direction of eventually creating your own system by answering the following questions:
1. What constitutes a good or robust indicator ?
2. Why confirmation is required from indicators ?
3. Why we need multiple indicators and why they must be independent of one another?
4. Why multi time period analysis is essential ?
5. How do you normalise your indicators ?

Overall Rating: 8/10

[Jake · Rating 4 out of 5]

Watched Bollinger Bands in stock charts for years without knowing what to do with them, or how to utilize them in trading, until I was inspired by Stock Market Mentor Dan Fitzpatrick's comments on "squeezes", a term I had never appreciated, to find the book that originated the term. . So I had to go to the source!! Can't get a better source than the person who developed them. This fully explains the development and strategy used to develop the tracking of the statistics of standard deviations (usually 2 SDs) around stock prices and the implications and signals that may be gleaned from them. This is not a book for investors who want to learn about chart reading, as it assumes knowledge of chart reading to begin with. It is for more advanced traders who want to hone their skills of looking for earlier bottom reversals and entry point clues, as well as ways to pick up or validate break outs from squeezes of volatility.

[Putra Bali · Rating 5 out of 5]

Best book ever

[Gregory Zinchenko · Rating 4 out of 5]

Никогда не был фанатом данного индикатора, но степень влияния и общий вклад во всю хуйню в теханализе -- неоспоримы.

[Lucky]

Great!

[Nadeem Raad · Rating 5 out of 5]

This is a great study on technical analysis of financial markets for any professional involved at any capacity.

[Karsten Reuss · Rating 5 out of 5]

Bollinger Bands by John Bollinger is a real classic. A lot of this was relevant during the bull market around 2000, but the main principals didn't change. The books helps you to understand and use Bollinger Bands in combination with other indicators. A lot of this knowledge can be well-applied in actual trading. Readers, however, should be familiar with mathematics and statistics. Someone who thinks Elliot is a dragon and a w-pattern is a knitting instruction should better start with a beginners' trading guide.

[James · Rating 4 out of 5]

Great book for understanding Bollinger bands (written by the creator of that indicator). If you want to understand how to interpret Bollinger bands, this is the book you need.

[Bernd · Rating 3 out of 5]

Good treatise on history, scope and application of BB by the originator of the concept. 2 stars off for rambling and peddling author's other services.

[David · Rating 2 out of 5]

Newer rehash of older attempts find the golden key to trading. There's no silver bullet, but folks keep trying. I find myself wondering about the returns of the authors portfolio.