John had a trading service years ago. Everyone lost money, and he shut it down. So, to answer the question, they don't seem to work for the creator of them.
@AndersenBands Is that a linear regression line, or did you extract the line from volatility bands themselves?
Hi Jeffro72. Good question. The straight lines are the the values of the average and regression as of the last day between the vertical lines. So, that is a regression line and subsequently the line from the volatility bands for that day (the endpoint).
I have found profitability by using bollinger bands i use them the following ways: if price goes outside the bands it is a continuation signal;ie it is sign of high momnentum I trade bollinger band Ws and Ms. what are these: when price goes outside the bands and then trades inside the band lower than the previous low it is BB W simple stuff very unambiguous and the most reliable indicator signal i have seen. yeah BB rocks
want to learn about Bb from the great man Bollinger himself see here https://www.bollingerbands.com/videos-articles-interviews
But i must say that expert price action traders will not get any new benefit by using BB. For the novice it will help them. Any indicator will only tell you what price is doing; if you can judge, what price is doing, there is no need for any indicator Indicator is a tool, an instrument to measure price but any experienced trader can eye ball the price and measure the same thing It may be a crutch but if it helps you why not use it?
here I will explain with the help of chart see below, how both BB and price action come to the same conclusion, one by calculation the other by eyeballing the market;the market is the same! in the chart the market goes below the BB at the red arrow marked 1;this is a BB continuation signal. it then retraces to the moving average,and then continues to the lower band BUT DOES NOT GO OUTSIDE OF IT. BB is showing that the move down from the average is less volatile than the previous move down,which broke the lower BB: this is is a BB BUY SIGNAL. PRICE ACTION traders will notice that the move sown from the average was much slower than the previous move down, that market took 7 bars to go down while in the previous move down,it took only 2 bars,made two attempts to break the previous low, failed and then went up,this is a failed low2, which is a High2, so this is a price action buy signal. two different ways to reach the same destination.