fxtrader interview april 2014

8/16/2019 FXTrader Interview April 2014

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J O H N B O L L I N G E RE X C L U S I V E I N E R V I E W - F X R A D E R M A G A Z I N

“Technical analysis

and robust trading systems are a way tominimize the impactof emotions in thetrading process.”

Jo hn Bollinger celebrated the 30th ann ive rsary o the Bollinger Bandand recently released an entire suite o Bollinger Bands tools. Johntells FX rader Magazine how and why he created these new BBindicators and in which way they can help traders in the trading process

FX Technical analysis

FX TRADER MAGAZINE April - June 2014


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FXM:Since your last inter view in FX raderMagazine, it seems like you’ve been

working hard creating new indicatorsand tools. Can you tell us more aboutthese new tools?

JB:

I developed Bollinger Bands 30 yearsago and shortly thereafer I derived twoindicators rom Bollinger Bands, %b,

which tells us where we are in relationto the bands, and BandWidth, whichtells us how wide the bands are. Formany years those three components

were the Bollinger Band amily.

Te next addition was BollingerEnvelopes, which are Bollinger Bandsderived rom the extremes o the datarather than an average o the closes.More recently I came to understandthat a number o new Bollinger Bandtools were possible, tools that coulduseully replace their non-adaptive

analogs. Te goal was to create a ullsuite o logically-consistent, ully-adaptive, state-o-the-art, technical-analysis tools derived rom theBollinger Bands. Teir commonalityis that they are all adaptive to marketconditions via their grounding inBollinger Bands.

FXM:Are they meant to be used acomplement to your volatilbands?

JB :Exactly. I use other indicator conirmation or divergen

o band action and that is hthese indicators are meant to used. hey work with BollinBands, Bollinger Envelopes, Bollinger Bands constructed walternative smoothings as thinputs. In act, they will work walmost any kind o trading band

ens of thousands of currency traders use the Bollinger Bands as one of their favourite technica

analysis indicators. As a olatility indicator similar to the Keltner channel, Bollinger Bands arwell known for being one of the most reliable tools for assessing expected price action and can be useto measure the “highness” or “ lowness” of the price relative to previous trades.

Since the creation of the bands 30 years ago, John Bollinger has continued developing several newindicators. He recently created a set of new tools, which are all adaptive to market conditions vitheir grounding in Bollinger Bands. Tey can help traders for example to better understand hothe bandwidth is changing, or if prices are trending or consolidating, or how the price is changing irelation to Bollinger Bands.

o introduce his new suite of indicators and tools and teach traders how to use them, John release a set of DVDs which condense his latest two day-seminar into 8 hours of presentations. Tis DVDcourse received FX rader Magazine “Mark of Excellence” as it gives traders all the necessarelements to trade using the Bollinger Bands, including the derived indicators and tools, anteaches some useful technical analysis techniques such as M&W Patterns, Tree Pushes to a High

the Ice Breaker rading System and more.

48 FX TRADER MAGAZINE April - June 2014

FXTechnical analysis

FX rader Magazine readers who wish to purchase the new DVD course: “Bollinger on Bollinger Bands DVD 2013 will receive a complimentary DVD “Introduction to Bollinger Bands” as well as a ree three-month subscription to thPro section o www.BBForex.com (read more here).

http://www.bbforex.com/http://www.fxtradermagazine.com/bollinger-dvd-orderform.phphttp://www.fxtradermagazine.com/bollinger-dvd-orderform.phphttp://www.bbforex.com/


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he new BB indicators cover mosto the traditional technical analysistasks. Below is a list and what they

do:%b - Where are we in relation to theBollinger Bands?BBImpulse - How is price changingin relation to the Bollinger Bands?BBMomentum - What is themomentum o

price in relationto the BollingerBands?BandWidth -

How wide arethe BollingerBands?% B a n d W i d t h- How wide arethe BollingerBands in relationto history?B a n d W i d t hDelta - Howis BandWidthchanging?BBrend -Are pricestrending orconsolidating?

FXM:How expertshould a traderbe in the ields

o technicalanalysis and the use o the BollingerBands in order to use your newindicators properly?

JB:I think that emotions are the trader’sgreatest enemy. echnical analysis

and robust trading systems are a wayto minimize the impact o emotionsin the trading process. But like any

skill technical analysis has to belearned and practiced. Te moreknowledge and experience you bringto the table, the better your chance osuccess.

FXM:Do you recommend a specific trainingto new traders beore using theBollinger Bands and the new toolkit?

JB:I recommend reading the classics o

technical analysis like Martin Pri Jay Schabacher, Robert Edwards a John Magee to get a sound oundat

or technical analysis in gene which will also build the oundator using Bollinger Bands.

FXM:Did the creation o the new to

come rom yoown tradexperience athe process i n e - t u n i

the use the volatilbands? did it corom tradespeciic neeor eedbaabout the uo the BollinBands?

JB:It came reedback. saw some vi n t e r e s t ithings bedone wBollinger Banand that sparkthe idea t

there could a Bollinger Band derived tool each category o A providingcomprehensive and consistent settools.

FXM:Do you use b oth the bands and

FXTechnical analysis

The goal was to create a full suite of

logically-consistent, fully-adaptive, state-

of-the-art, technical-analysis tools derived

from the Bollinger Bands.

FX TRADER MAGAZINE April - June 2014


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content * content * contentBP POLITICSFX Technical analysis

new tools to trade orex?

JB:

Yes. In act I created a website specificallyor the orex market, www.BBForex.com. All o my indicators including mynewest work are available or currency

pairs with streaming real time pricing.

FXM:Are some o the new tools specificallyuseul on the orex?

JB:

None o the tools were createdspecifically or orex, but all thenew tools work well or the orexmarket except or indicators such asBBAccumulation which rely on volumedata.

FXM:alking about the evolution o theForex market today, do you see traders

using currencies more and more as anasset class?

JB:Yes, because as the various asset

classes become more correlatedtraders are on the lookout or otheropportunities. hat correlation

makes currency trading ever moreattractive in the context o a portolio.

FXM:Do you see the increased regulationo the orex market more as a sign oconsolidation or limitation o retailFX trading in the uture?

JB:

I mostly see it as a sign that the orexmarket is expanding and maturingand thereore increased regulation isto be expected.

FXM:Do you think traders are well-

prepared today when they approachcurrency trading?

JB:I think that traders, all traders, needto continuously learn and growto remain successul. here areample opportunities to hone one’s

knowledge and skills. he level preparation is a personal choice.

FXM: What would be your most importrecommendation to a orex tratoday?

JB:Keep it simple. Learn a ew tools adevelop a system that works or yDo not jump rom system to systbecause then you cannot learn r

your mistakes. Be disciplined a

understand your strengths a weaknesses and develop a tradstyle that works or your strengtAnd learn about position sizing.

About John Bollinger

John Bollinger is best known for his Bollinger Bands, which have been widely accepte

and integrated into most of the analytical software currently in use. He is the president an

founder of Bollinger Capital Management, Inc., an investment management company tha

provides technically driven money management services. His book, Bollinger on Bollinge

Bands published by McGraw Hill, has been translated into eight languages.

Mr. Bollinger has published the Capital Growth Letter since 1987 and is interviewe

regularly on television and radio. He is a speaker at nancial seminars worldwide and is th

founder of several nancial websites: www.BollingerBands.com, www.BollingeronBandscom and www.BBForex.com.

John Bollinger is the recipient of the 2005 Market Technicians Association Annual Awar

for Outstanding Contribution to the Field of Technical Analysis.

50 FX TRADER MAGAZINE April - June 2014

FX rader Magazine readers wh wish to purchase the new DVcourse: “Bollinger on BollingBands DVD 2013”, will receive complimentary DVD “Introductio

to Bollinger Bands” as well as a rthree-month subscription to thPro section o www.BBForex.co(read more here).
http://www.bbforex.com/http://www.fxtradermagazine.com/bollinger-dvd-orderform.phphttp://www.fxtradermagazine.com/bollinger-dvd-orderform.phphttp://www.bbforex.com/

fxtrader interview april 2014

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