We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • The US #StockMarket is on pace to close markedly lower to start the week with less than 30-minutes left in today's #trading session as #Coronavirus fears roil Wall Street S&P 500: -1.46% Dow Jones: -1.45% Nasdaq: -1.80% Russell 2K: -0.73% VIX: +22.25% $SPX $DJI $NDX $RUT $VIX
  • #Bitcoin Daily Pivot Points: S3: 7768.5 S2: 8055.53 S1: 8177.32 P: 8342.56 R1: 8464.35 R2: 8629.59 R3: 8916.62
  • The #Dow Jones remains elevated as tech and defensive sectors underpin the index. However, we see caution in chasing the market higher amid rising risks of a potential correction. Get your market update from @JMcQueenFX here:https://t.co/3klcZ6CHpe https://t.co/3xvxNNWb2O
  • RT @MarketWatch: Economic hit from coronavirus likely to be short lived, but it’s still ‘a little scary, frankly’ https://t.co/NyB3DCRpGS
  • Know the Slope. . . $SPX500 Daily - https://t.co/FoBtqk9CYA https://t.co/nkmzVkx5p6
  • $EURUSD Daily Pivot Points: S3: 1.095 S2: 1.0993 S1: 1.1009 P: 1.1035 R1: 1.1051 R2: 1.1078 R3: 1.112
  • $AUDUSD has been my favored pair to pick on for $USD strength scenarios. RBA is next week, potential for losses still there. But can sellers break-through that .6700 handle that proved so tough to break last year? https://www.dailyfx.com/forex/fundamental/article/drivers_of_price_action/2020/01/27/australian-dollar-price-analysis-aussie-crushed-js-audusd-aud-usd-nears-6700.html https://t.co/DhGJRHFssC
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: 0.47% Oil - US Crude: -0.13% Silver: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JhDhC307cu
  • Important to keep in mind ahead of $AAPL earnings tomorrow considering what happened the last time they revised their outlook lower - https://www.dailyfx.com/forex/market_alert/2019/01/02/Apple-Cuts-Revenue-Forecast-on-US-China-Trade-War-USDJPY-Crashes.html?ref-author=phanks https://t.co/XSOY7Ow5pa
  • Here is an update to the rolling 12-month market performance of those assets that I consider to be 'risk sensitivity' through today's fireworks. No doubt in my mind it is a 'risk move' https://t.co/1ThNLiUIOq
Day Trading with Bollinger Bands®

Day Trading with Bollinger Bands®

2019-09-27 11:55:00
Warren Venketas, Markets Writer

Bollinger Band® day trading is a less popular way to utilize the Bollinger Band® indicator, however, some intraday traders do use the Bollinger Band® within their strategies. Day trading with Bollinger Bands® will lay the foundation for a Bollinger Band® scalping technique to trade consolidating forex markets during the Asian trading session.

This article explores:

  • Why trade with Bollinger Bands®?
  • How to use Bollinger Bands® in intraday trading
  • Advantages and limitations of day trading with Bollinger Bands®

This article assumes the reader has a basic understanding of Bollinger Bands®. If you’d like a refresher, read our guide to Bollinger Bands® in forex trading.

Why trade with Bollinger Bands®?

Trading with Bollinger Bands® allows traders to opt for different methods of trading the financial markets. These methods include day trading, trend trading, breakout trading as well as combining the Bollinger Band® indicator with other technical indicators. The adaptability of the Bollinger Band® makes it a popular tool used by traders from novice to expert.

The Bollinger Band® indicator was developed by John Bollinger in the 1980s. Bollinger Bands® focus on price volatility which can be implemented in all financial market trading.

How to use Bollinger Bands® in Intraday Trading

Bollinger Bands® scalping example using EUR/GBP

The below EUR/GBP five-minute chart shows an intraday Bollinger Band® scalping system used during periods of relatively low volatility (narrow bands). Use the standard 20 period, 2 standard deviation setting for this system. This period is taken from 18:00 – 06:00 GMT daily.

Periods of consolidation tend to repeat themselves during this time aligning the time of day with the strengths of the strategy. In this system the lower and upper Bollinger Bands® serves as levels of support and resistance respectively.

Day trading Bollinger Bands with EUR/GBP

The support band identifies buying opportunities while the resistance band recognizes sell signals as marked on the chart. These areas can also be used as closing levels dependent on the direction of the trade. This simple strategy gives another useful method as to how the Bollinger Band® can be used under different circumstances.

Advantages and Limitations of Day Trading with Bollinger Bands®



Easy to use strategy that can be used by novice traders

Day trading with Bollinger Bands® only works in low volatile markets

No need for any other subsidiary indicators

Relatively low risk-reward ratios

Further reading on Bollinger Bands®

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.