Bollinger Bands: Beginner Guide

Bollinger Bands are one of the most popular trading indicators and in this video we'll give you a tutorial on what they are and how you can use them in your trading.
The bands themselves represent two volatility lines around the (typically) 20-day moving average. The two bands are placed at 2 standard deviations from the moving average. This is the concept that John Bollinger came up with in the 1980s.
This statistical approach to trading takes the concept of standard deviations and places it on the chart. The idea behind it is that because standard deviations cover 95% of occurrences, this could mean that 95 out of 100 times, the price will stay within those bands.
Additionally, the moves towards each band can be taken as buy or sell signals. For example if the price starts approaching the upper band, then we might take that as a sign that the market is overbought and the price could probably fall. Vice versa, when the price drops to the lower band, then that would mean that the market is oversold.
Watch the video for even more details about this indicator and let us know in the comments if you have any questions.
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[@innocentrecordz]

I have commented on a few of your videos. I need to say this again Trading 212 videos are the easiest and most informative videos relating to trading I have seen on KZbin. Keep it up, guys. Much love to you all.

[@Eastbaypisces]

what time frame should i use for this tho??

[@prestburyinvest7919]

Fantastic tutorials, loving working through them and coming back for recaps. Many thanks David

[@n0rth-wow801]

You're guides are so amazing. I also watched the RSI and MACD and know I understand a lot, thanks!!

[@joseraulyorisf.6622]

What a great channel. Your videos are so educational and easy to follow. Thanks so much for uploading them, great tools for beginner traders like me. Explaining all those technical topics in such a simple way helps a lot lot of people. Cheers from Venezuela.

[@charenacolvin2792]

omg you explained that in such layman terms thank you !

[@olddog1595]

That was great, really clear and uncomplicated, the trouble is you did such a great job now everyone wants you to cover an indicator! I am a bit late to the party, but I would love you to do an idiots guide to understanding the TD sequential

[@Willionaire2387]

Great video and very informative Mr. Jones. Please keep up the good work!!!

[@AliveforAPurpose]

I always like your videos before I even watch them. Thank you again John.

[@VictorLejarsa]

This is a very good and simple video mate. Very useful and easy to pick up. Thank you for this, you just won a follower and a like.

[@angeluy32]

This is a great supplemental information aside from the references which I currently have. Thanks a lot for the precise explanation sir. More power.

[@jonlewis8932]

Thanks David you're a great teacher, i hope you make loads from your youtube vids, as you have helped me increase my profits and lower my losses.

[@favorites51066]

You explain that so well! It was so easy to understand. Thank you. It made 100% sense to me.

[@vivarantx]

you are a legend

[@silvergaskins4942]

Thank you for explaining this in a way that is so simple to understand

[@fawaazsheriff5409]

Can you make a video on “Ichimoku cloud” indicator Thank you

[@doobie6971]

if you are struggling with this indicator you can look it up on babypips.com it's an amazing website and explains it perfectly.

[@ostlingfletcher7932]

I knew absolutely nothing about them but thanks to you I feel very confident using them

[@hsamo713]

David thanks a lot for those amazing videos, I’m learning a lot from you. I’m curious to know what are you favorite personal indicators and how do you use them together?

[@benjaminsmith6674]

just added this as a default view on my account when researching. Thank you for explaining this in a very simplistic way!

[@branhamchima]

How has your trading been thus far?

[@Jay-vq2hp]

Thank you for these tutorials im learning a lot because of them they are very clear to understand

[@danielfradd802]

Great videos mate. Really well explained. Thanks!

[@vihanga89]

You guys need to make videos again! Still referring to these. Great videos. Much appreciated :-)

[@sharona5967]

Great tutorial. I'm a beginner, and I found it very easy to understand and follow.

[@teachereducation622]

I appreciate ur soft tone.

[@Sloris19]

Why did I enjoy learning this so much 😂 good job with the explanation

[@user-hm9mj1hc3j]

Thank you, this is so informative, 'll be using this indicator a lot~

[@OtakuClassy]

How's going so far?

[@myriaddreams]

So perfectly explained. Thank you!

[@AAscension]

Hey, good video! Clear explanation, good pace. Thanks.

[@sukhmaidickoff]

Good and precise video - videos don´t have to be 1 hour long to give a good and thorough explanation of a trading indicator !

[@alexpopovic]

this is an excellent tutorial, seriously, thank you!

[@registrateanything]

Hi! I love you videos, very simple and clearly explained. Thanks

[@ankittalele5845]

Thanks for the examples. it was very helpful to understand.

[@suryodayanthyagarajan9207]

Lol!!! No prizes for guessing names!!! Uncomplicated way of explaining.. Cheers mate! keep up the good work.

[@vinitdashputre9009]

You make it look so easy Thank you♥️

[@LoveTech]

Great video. Thank you!

[@ginob615]

Cute kittie in the background! Good info too. Thank you!

[@jimflask1164]

I see this is an old video and its my first time watching this and Im going to leave a comment anyway. Im new to trading and its a fun hobby for me... The way I see these things, all of these indicators, especially the popular ones. If everyone is using them the same way as indicators when to buy and sell. What is happening is millions of people are coordinating their trades together so it becomes a self fulfilling prophecy. Like RSI when it indicates something is over sold... everyone using that indicator see the signal to sell and everyone sells and the price moves back. Its not that the indicator is predicting the market it is that everyone following the signal is working in tandem. So absolutely learn the popular indicators and use them but also keep the thought in the back of your mind that anything can happen no matter what shapes you draw on the chart.

[@yasinchaudhry6195]

well explained with simplicity. Thanks

[@lesleymiddelham6914]

Perfect vid!

[@Prakash-bx8hb]

I never knew about bollinger. But now I will add it to my chart. Thanks for the wonderful way of explanation. I would like to learn how to make 800 $ in 30 min scalp

[@superdenggtv8958]

This video is so helpful. You are a great Man sir (RESPECT)

[@dancampeau1963]

Very informative. Thank you!

[@khinger6]

Excellent channel Came across it by chance I am so glad I did.

[@mansuekimilandu6661]

Thank you for make so simplified as j have use this principle without full understanding.

[@5roundmedia955]

thanks again for the great video

[@sandmbmx]

That was great, I will try to use this!

[@victoria4844]

Perfect tutorial, thank you very much!

[@jeremy339]

Thank you Bro. YOu're a great teacher.

[@Wideolink]

Awesome explanation !

[@minstergarth1585]

Very helpful thank you. Have an account with yourselves and will almost certainly be putting some money through you in the next days to weeks. Thank again.

[@Gergedanification]

Guys, you are the best! Thank you!

[@LeoOnealProductions]

Amazing Channel ! Thank you so much for

[@dibnidebtinvestigationbroker]

Its a relief to find an explainer, without an over excited yank bellowing out gibberish

[@rh5060]

Very enlightening.

[@mursalimsalim2769]

Thanks for sharing knowledge about technical trading Bolinger band...

[@martinmccluskey9267]

Very helpful guys. Thank you. 👍

[@aljpelayo2120]

love the video. well explained. thank you

[@chrisik8217]

Nice.... So good.

[@Rolnix1]

Thank's , now I finally know how it works ! And finger up!!!

[@raupi99]

Good video!

[@travisfoster1023]

0:53, that's hilarious. I had no idea at first what that was moving above his monitor.

[@davidjones2452]

The famous "Major Coffee Gulp" reversal pattern.

[@matthewludivico1714]

Nice explanation. Question: Are Bollinger Bands, in any way, weighed by the volume of the trades taking place? If not is there any indicator that combines the idea of Bollinger Bands with trading volume?

[@jimturner6400]

Thanks very well explained .

[@peterwale5574]

I really love the glance on the chart... it seems easier to read...can you please let me know the broker to use...

[@skynet6427]

as always great video. would u also cover GMMA Indicator?

[@Ninja238]

Very informative video. Please could you do a video about multiple time frame analysis?

[@garyfarr4588]

New subscriber here.Really enjoying your clarity and professionalism.After watching this I heard you say,"Not something I use often." In the videos I have seen, I have heard you say,"Not a big fan."and "Not something I use." Very interested to know ...what are your go to indicators,please?

[@clarus_tx]

Great explanation!

[@TheMunishk]

Very nicely explained

[@Pr3kashSingh]

Thanks for nice explanation

[@davidphilipsmusic]

Sooo well explained

[@stampgalore]

Very good explaining thanks

[@billyschroeder8980]

Fantastic video 👌🏽

[@benb8291]

great video thank you! what are you favorites technical indicators that you'd use more often? since Bollinger Bands isn't one of them. thanks again

[@davidjones2452]

For me, price, support, resistance and trend are much more important than technical indicators.

[@Yoisthatabe]

Love b-bands, I feel like im cheating using it lol.

[@unknownname8988]

Besides B-Bands what other accurate indicators are good?

[@exposingyoursong]

Use volume and rsi besides bollinger

[@josephcorbo1200]

What is the best trading platform to use for bolinger band presets

[@Trading212]

Hi Joseph, you may want to try Trading 212 for free with virtual money - www.trading212.com/en/Open-Practice-Account-GBP.

[@Darko-kn6il]

Joe King care to tell me how you use bollinger band?

[@dawoodsaddiq2708]

Can you made a video of your live trading?

[@Zorinxa]

that would be awesome, even if it's only of one trade. That would tie everything I've seen here. Great suggestion.

[@yao968816]

you also need watch the band is trend up or trend down, if price trend down you like to buy at lower band price you will in trouble

[@TH120455]

Excellent video thanks. DO we have a video on MACD

[@MultiDisposition]

Hey David love your videos. If you have time to answer I am curious what indicators you do use. Appreciate the time taken. And, specifically will you adjust the settings of an RSI say depending on time frame or run with the default parameters.

[@davidjones2452]

Hi, I really just focus on trend support and resistance - maybe an RSI now and again. I stick with a 10 day RSI.

[@MultiDisposition]

No worries. Thanks for the reply.

[@martindegarmo5810]

Awesome good to know.

[@olir6910]

This actually made sense!

[@sasidharanpillai4285]

thanks

[@Ranjit.Kulkarni573]

Very Good

[@timmyjan]

finally day vid Jones Rrrrrr on BB :)

[@TheJuls001]

Amazing vid. Quick question, what is the best time setting for BB? ie 4H, 12H, 1D?? Thanks

[@amitesh42]

Can you please make a video about pivot points????? thank you

[@MP-yj5iu]

Thanks

[@AirElegant]

The rubber band indicator

[@aliinalgeria]

thanks david for this nice video شكرا

[@shevasecondchan]

very very great video as always.. I would suggest the next video we can learn about news trading maybe..Thanks!

[@TomeoTube]

I vote for this too.

[@felreizmeshinca7459]

Thank you!

[@ClarkPotter]

Didn't know Jason Bateman was a trader, too. So talented.

[@PradeepSharma-fl2uy]

Videos are really awesome. Just a small request that can you please sort the videos in "Technical Analysis For Beginers" indicator wise (Like Support and resistance videos first ,then oscillators related videos bunched together).That would really help us to see the videos in flow. Please this is a gentle request.

[@tonyspriggs4050]

Hi david The charts on your three screens behind you? Are you able to say where they are from? Cheers Tony

[@jeannechase5163]

I just learned about your videos, you do an excellent job explaining concepts. For a rather new traders, I am looking for a few set ups to try and learn from in equities. Could you do a video on set ups for beginners?

[@Trading212]

Hi Jeanne, do you mean chart setups?

[@SICKFREDO]

How different is that from VWAP? isnt it the same concept?

[@Stune5]

@trading 212 you should look to add VWAP to your list of indicators

[@vivarantx]

great video man!+

[@zuhalkoc3750]

amazing !

[@bills1157]

Only guy I can understand...thanks.

[@cryptospotlight7751]

I subscribed..... Thanks for the interesting view

[@flagshipathletics8323]

So will the market break the Bollinger bands? Or do the bands just constantly adjust in relation to the moving average and from there you would just determine if it exceeded previous landmarks? I'm still fairly novice in trading and analysis, hopefully I phrased this question sensibly.