The Secrets of the Bollinger Bands Indicator Part 1

The first time this indicator was described was in 1987 by Perry Kaufman in his book called The New Commodity Trading Systems and Methods. Later the indicator became widely popular thanks to the American analyst John Bollinger.

He was born in California and first worked as a cameraman, but quickly forgot his first profession and devoted himself to his work as a technical analyst of the Financial News TV channel. During the course of his work he had the opportunity to observe and study the financial markets. It was exactly during that period – between 1984 and 1991 - that he created his own system for rational analysis, which is being used to this day and is still as relevant as it was decades ago, now popularly known as “Bollinger Bands”.

In a series of posts I will do my best to introduce you to the nature of this useful and simple indicator, which gives us important information about the way an instrument moves, and also I will elaborate on the ways that it can be used rationally and effectively while we trade.