Bollinger Bands is a popular technical analysis tool used by traders to identify potential price movements in the forex market. It is a volatility indicator that measures the standard deviation of a security’s price relative to a moving average. The most commonly used Bollinger Bands are set to a 20-period moving average and two standard deviations from the moving average. However, traders can customize the Bollinger Bands by entering different deviations, such as 2, 3, or 4, to better suit their trading style and preferences. In this article, we will explain how to enter different deviations for Bollinger Bands in Forex Trader Pro.
Forex Trader Pro is a trading platform offered by FXCM, a leading forex broker. The platform provides traders with a variety of technical analysis tools, including Bollinger Bands. To enter different deviations for Bollinger Bands in Forex Trader Pro, follow these steps:
Step 1: Open the chart you want to analyze
In Forex Trader Pro, you can open a chart by clicking on the “Charts” tab in the main menu and selecting the currency pair and time frame you want to analyze. Once you have selected the chart, you can customize it by clicking on the “Settings” icon in the top right corner of the chart.
Step 2: Add Bollinger Bands to the chart
To add Bollinger Bands to the chart, click on the “Indicators” icon in the top left corner of the chart and select “Bollinger Bands” from the list of available indicators. By default, Forex Trader Pro will set the Bollinger Bands to a 20-period moving average and two standard deviations from the moving average.
Step 3: Customize the Bollinger Bands settings
To enter different deviations for the Bollinger Bands, click on the “Settings” icon next to the Bollinger Bands in the “Indicators” menu. This will open the Bollinger Bands settings window, where you can modify the input values.
The input values for Bollinger Bands include the period, the standard deviation, and the type of moving average. The period is the number of bars used to calculate the moving average, and the standard deviation is the number of standard deviations used to calculate the upper and lower bands. The type of moving average can be either simple or exponential.
To enter different deviations for the Bollinger Bands, you can adjust the standard deviation input value. For example, if you want to use three standard deviations instead of two, simply change the input value from “2” to “3”. You can also enter other values, such as 4 or 5, depending on your trading style and preferences.
Step 4: Apply the changes and analyze the chart
Once you have entered the desired input values for the Bollinger Bands, click on the “OK” button to apply the changes. The chart will now display the Bollinger Bands with the customized input values. You can analyze the chart and look for potential trading opportunities based on the Bollinger Bands signals.
Conclusion
Bollinger Bands is a versatile technical analysis tool that can be customized to better suit your trading style and preferences. By entering different deviations, such as 2, 3, or 4, you can adjust the sensitivity of the Bollinger Bands and identify potential price movements in the forex market. Forex Trader Pro is a powerful trading platform that provides traders with the ability to customize the Bollinger Bands settings and analyze the charts with ease. By following the steps outlined in this article, you can enter different deviations for Bollinger Bands in Forex Trader Pro and improve your trading strategy.
