This paper endeavors to evaluate the effectiveness of the usage of Bollinger Bands. Bollinger Bands can capture the volatility of stock and can be treated and factored inas the support and resistance in the course of analyzing a particular stock. The purpose of this study is to identify and substantiate its relation to profitability. The methodology is carried out by testing the bands and their success along with the importance of moving averages in the study. After due testing a singular trading rule has been established in respect of the bands. It is founded that during the course of trading in a particular stock with respect to Bollinger Bands.
Bollinger Bands, technical analysis, RSI, Stop Loss
