The Formula Of Caluculation

The Bollinger Band was designed by John Bollinger, a well-known part of the race Evolution of technical indicators. John Bollinger estimated their bands, as a way to assess if prices were higher or lower in relative terms to the relative instability. Traders use these bands for predicting rises and falls in the instability show that the trend changes are to happen in the near future.
Bollinger indicator shown in the trend data by mixing a moving average with the underlying currency instability. The sign looks like a deck of enlargement and reduction driven by the evidence of the cost of a standard data set. The two border lines characterize two standard deviations of the distance above and below moving averages. Over time, the band resembles the music of an accordion.
Formula Bollinger Bands

The Bollinger Band is normally trade in Metatrader 4 software, and includes the following basic steps of the formula to calculate in sequence:
1. Calculate simple moving average of price movements by setting standards in the period of "20" (or you can modify your choice).
2. Calculate the "upper limit" by adding the line "2" standard deviations from the simple moving average (or can be modified)
3. Calculate the "lower limit" line in the same manner as that of "upper limit".
This indicator band consists of 3 mobile lines selected in "Blue". The upper and lower Bollinger bands cover the candlestick formation, and the moving average of the blue line or midpoint. At the time of contraction bands, the consolidation is carried out and there is a low volatility. This is followed by a pause simultaneously indicated by the band expansion and volatility.
Eventually, prices have a tendency to move toward the center line shortly after the "embrace" any of the limits. Resistance is denoted by the upper limit, while the lower support means. These are the reliable data for traders as they can execute their plans accordingly. The advantage of Bollinger Bands is its ease in viewing, and also its popularity and its frequent use in pictures Forex comments