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Bollinger on Bollinger Bands
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Rating: 4/5 from 22 reviews If history has taught us anything...Recommended reading!Beeing a Bollinger Band enthusiast for many years, I found it very helpful to read from the creator of the bands how to interpret and use them. There are many ways to use BBs, but the book has helped me to understand and confirm some thoughts of my own. Mr Bollinger describes about M and W formations and how BBs can help you understand and foresee them better. He introduce a new concept to me, normalized indicators and also new indicators derived from the bands themselves. All these indicators come with complete formulas for you to create yourself in your preferred technical analysis program if you want to. He also explains three different strategies were you can use BBs and decribed indicators as systems for your trade. This book is now definately one of my favorites and I will read parts of it over and over again. Who Better to Explain Bollinger Bands...Of all the main stream technical indicators, it is safe to say that Bollinger Bands are perhaps the least understood. But they can become part of an arsenal of highly useful technical tools for those who have learned how to properly apply them and one good way to get a running start is to read his latest book, Bollinger on Bollinger Bands. Not only does the book provide some very useful background information on how they came to be, it is an opportunity to hear from the master himself how he uses the bands to best effect. According to Bollinger, one pattern that he calls the Squeeze (a topic on which he spends a whole chapter) draws more questions than any other aspect of Bollinger Bands. As he describes it, his bands "are driven by volatility, and The Squeeze is a pure reflection of that volatility." (Excerpt from Investopedia.com with permission.) After reading the book, I developed a scan to find stocks that are getting the Squeeze and it works pretty well. Sure enough, a stock that has shown a period of declining volatility, generally breaks out with a bang shortly after reaching a low extreme. The trick is then trying to determine which way. Bollinger includes a number of tips and indicators in the book to help the trader figure that out too. This book is for anyone who has ever looked at Bollinger bands and tried to understand how to use them as well as those who do use them now but want to get some more great ideas. It is not a difficult read and is actually very well written (I am always surprised by traders who have been steeped in mathematics and technicals like John B. who can also write well.) He is obviously an excellent communicator and this fact comes through loud and clear in his book. Bollinger on Bollinger Bands is well worth the money. It is also a chance to hear the master who we see on CNBC and in the Wall Street Journal express his ideas and views on markets and how to profit from them. That alone, makes this book worth reading. Matt Blackman - Technical Writer/Reviewer Email: matt@tradesystemguru.com | ||||||||||||||||||||
If you think you know everything about BB you'd better not say it too loud before you read this book. Being myself a mixture of day-swing trader I have to say it helps a lot, although I look at other tools before entering or exiting a trade. But if you are a position trader or a mid-long term investor, I think the BB are supposed to be a valuable tool at your disposal. You're not going to make a killing only by using this tool, but if you combine the BB with other tools such as simple or exponential moving averages, volume, RSI and/or momentum and accumulation/distribution, you have much better chances of being financially more independent.
The most part of day-swing-position trading and mid-long term investing book authors tend to make things seem much more complicated than they are (I suspect they do it on purpose-to make you feel foolish or to make you think they are geniuses?). Well, John Bollinger's book is very simple to understand, and it's exactly the simplicity in explaining somehow difficult tools and theories that I like the most.