Welcome! Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If you are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. Obviously, the task is not easy as the statistics claim that only 5% traders win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.

HOW TO TRADE WITH FIBONACCI BOLLINGER BAND TECHNICAL INDICATOR

yourFXguide-Fibonacci Bollinger Band technical indicator can also be called rainbow indicator because of its presentation. I made so many google searches to know the name of the genius who developed this technical indicator, but I did not find the name of the developer of this technical indicator.

This great technical indicator is developed with Simple Moving Average, Average True Range, and fibonacci ratios. We already know the traditional bollinger band technical indicator that has a middle line, an upper line and a lower line. Unlike the traditional bollinger band, fibonacci bollinger band indicator has a middle line, three lines above the middle line and three lines below the middle line.

The lines above the middle line or base line represent resistance levels and the lines below the middle line represent the support levels. Outermost bands represent strongest support and resistance.

I am not recommending this technical indicator to be applied alone to find the entry and exit signals. With other technical analysis tools, Fibonacci Bollinger Band technical indicator can be applied to develop a trading system. 

Fibonacci Bollinger Band technical indicator can be applied by any type of traders on any time frames chart. 



Fibonacci Bollinger Band technical indicator can not be interpreted easily to find the entry and exit signals. The trading systems and strategies developed with this technical indicator are mostly based on the following key points:
  • The bands or lines above the zero line or base line represent resistance levels.
  • The bands or lines below the zero line or base line represent support levels.
  • When price crosses the base line from above, it is considered as a signal of bearish trend.
  • When price crosses the base line from below, it is considered as a signal of bullish trend.
  • The outermost bands represent strongest support and resistance level.
Dear Traders, These are the key points that can be helpful to develop a trading system with fibonacci Bollinger Band technical indicator. If you already have a trading system with traditional bollinger band technical indicator, you can confidently replace the traditional bollinger band by fibonacci bollinger band.

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