Let’s take a look at how to use Bollinger Bands and continue to add tools to your trader’s technical analysis (TA) toolbox.

“What’s a trader’s toolbox?” you ask.


Let’s compare trading to building a house.

You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails.

There’s a proper tool for each situation.

Just like in trading, certain technical indicators are best used for particular environments or situations.

So, the more tools you have, the better you can adapt to the ever-changing market environment.

Or if you want to focus on a few specific trading environments or tools, that’s cool too.

It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Bands or Moving Average specialist.

There are a million different ways to grab some pips!

For this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.

You might not necessarily use all of these tools, but it’s always nice to have plenty of options, right?

You might even find one that you understand and are comfortable enough to master on its own.

Now, enough about tools already!