An efficient trading strategy using Bollinger Bands-Money Classic Research

There are many indicators which can be used to generate the buy and sell calls. But no indicator is 100 percent correct and there are possibilities of loss with every indicator. The settings for example the period of moving averages are also very important. Bollinger band is an important indicator which gives best results in the sideways or range bound market. The buy and sell signals can be initiated with the breakout from the bands. Many analysts are using the Bollinger band strategy to generate the accurate stockmarket tips. The Bollinger bands can be used with other indicators to confirm the trend reversals. For example the Bollinger bands can be used with RSI to confirm the anticipated price movements.

The Bollinger bands can be traded differently in the trending market and sideways market. In the trending market the upward facing Bollinger bands shows an uptrend. Similarly in down ward inclined Bollinger bands the trend is confirmed to be a downtrend. In the sideways market there is no uptrend or downtrend and in this case the Bollinger band can be used to generate the buy and sell signals on the breakouts. If the breakout is obtained from lower band a buy signal is anticipated. Similarly if the breakout is obtained from the top band a sell signal is initiated.

Once a trader has mastered some strategy the rest of the task is easily done for the trader. The important thing is how efficient the trading strategy is and how well the trader applies the strategy. It is a known fact that no strategy is hundred percent correct. The trading strategies should be followed along with the principles of wealth management and Risk Management. The principles of wealth management and risk management are the two most important concept used extensively in the share market trading. Risk management can be followed by using stop loss tool and the wealth management can be followed by proper diversification of the portfolio and investment.

If a trader is new to the stock market he can take the help of some reputed advisory firms for their support and advice. Money ClassicResearch is one such reputed and esteemed advisory firm which provides accurate stock market tips in the form of buy and sells signals. These advisory firms have experienced technical analysts who on the basis of the in-depth research provide accurate stock market related calls.