Hey guys,

Today I will talk about one of my favourite trading tools called the Bollinger Bands. 
It is very relevant and easy to understand.

![725_Ly9jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9kOThhZjQ0NTU0MTkyMTlmMmIzMTM2YWRiODU1ZDA4NS5qcGc=.jpg](https://steemitimages.com/DQmPFBqAtjbMz71rKr2N6uDiSL48t7gYs5YeRvReyWnmz42/725_Ly9jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9kOThhZjQ0NTU0MTkyMTlmMmIzMTM2YWRiODU1ZDA4NS5qcGc%3D.jpg)
From Cointelegraph 

Definition from Investopedia :

Using The Bollinger Bands, created by the famous technical trader John Bollinger, is plotted two standards deviations away from a simple moving average.
The Bands can be used to measure the "highness" or the "lowness" of the price relative to the previous trade.

In simple world, it will help you understand the volatility of the coin and so, will help you to take decision on when to sell and when to buy.

The Golden rule of all traders is : buy low sell high.

Well let's have a look to this example.
I'm using the Bollinger Bands on Bittrex and I took the Ark coin as example.

Procedure :

- Go to Bittrex, log in, and go to one of the coin you want to trade (here will be Ark).
- On the chart, make sure you are at 30 min Timeline 
- Click on "Studies", then "Bollinger Bands"
- Set it up as it is, just click "Create"

![Screen Shot 2017-10-03 at 18.37.08.png](https://steemitimages.com/DQmSLhXAanGainjhAXPnkH8i7KhYkzkLnvPn2D2SeYZYfMk/Screen%20Shot%202017-10-03%20at%2018.37.08.png)

![Screen Shot 2017-10-03 at 18.37.47.png](https://steemitimages.com/DQmaTjR9wUQcsT9D5Jed4SAboGNWqsf2yA9LAao3VL5t6VW/Screen%20Shot%202017-10-03%20at%2018.37.47.png)

- When you have your Bollinger bands, start to have a look to the up and down 

![Screen Shot 2017-10-03 at 18.38.12.png](https://steemitimages.com/DQmRgXhun8Q6rMANdJc8eQYYn1uw6U2oCXjiTgjs9RKvR23/Screen%20Shot%202017-10-03%20at%2018.38.12.png)

- What you want to see and what you are interesting in are all the candles "out" of the bands (either low or high). It is where you will see a correction and the price will either drop or pump. 

- Here with the cursor, it is where the price went very high and went out of the bands. Followed then by the correction and the drop's price. 
This is your sell point : IT IS WHEN YOU WANT TO SELL !

![Screen Shot 2017-10-03 at 18.38.53.png](https://steemitimages.com/DQmXCFFT24v7ssR842eEPoNgmdeyjkLD9bTeKJte7rvtvzE/Screen%20Shot%202017-10-03%20at%2018.38.53.png)

- As opposite, here with the cursor, it is where the price went down too much, out of the bands, and follow a correction too but in the other way.
This is your buy entry : IT IS WHEN YOU WANT TO BUY

![Screen Shot 2017-10-03 at 18.38.41.png](https://steemitimages.com/DQmdfENFTKLSubb5nVoNrRvgh2NESvU8hXEgWSrEMGCo8Bp/Screen%20Shot%202017-10-03%20at%2018.38.41.png)

It is very simple to understand the volatility with this tool and understand when or not acting.

- Also when using the Bollinger Bands, have a look to the period where the coin didn't move much. Means when all the candles stay in the bands : soon, something will happen. Could be a drop or it could be a pump. Depends on what's going on the market, news etc as you all know.

Here the example with Ark :

![Screen Shot 2017-10-03 at 18.56.07.png](https://steemitimages.com/DQmezC2L7AxjVYGjF2vH2KAjeHL3Vy4u6B1PZNix6xDgBX8/Screen%20Shot%202017-10-03%20at%2018.56.07.png)

The "flat" period shows you that something will happen. And this period was followed by a consequent drop. It could have been the opposite. But anyway, the drop means obviously an entry point for you.

If you couple this technique with the Golden Cross technique, you will be the king of the petrol pretty soon haha.
Have a look to the Golden Cross tool here : 

https://steemit.com/cryptocurrency/@jlcrypto/how-to-use-the-golden-cross-technique-for-daily-trading-on-bittrex-and-get-up-to-100usd-day

I'm just sharing my experience, do you own research guys and feel free to drop comments if you need any help :).
Let me know too what is your favourite tool for trading.

Joris