Billiard Bands: Using Dynamic Support and
What if your support and resistance levels automatically adjusted to market volatility while you were asleep? Imagine waking up to find your algorithm c...
billiard bands is an essential topic for every trader looking to improve their futures trading. What if your support and resistance levels automatically adjusted to market volatility while you were asleep? Imagine waking up to find your algorithm captured a significant move on ES futures before your morning coffee was brewed. Billiard Bands is a common misnomer for Bollinger Bands—a dynamic technical indicator that creates adaptive support and resistance levels based on market volatility. The confusion stems from the word "billiards" (referring to pool/billiards) versus "Bollinger" (named after the indicator's creator, John Bollinger). This article will clarify the terminology and explain how to effectively use Bollinger Bands for futures trading. The majority of professional traders use some form of technical indicator in their daily analysis. Key fact: Bollinger Bands consist of three lines: a middle 20-period simple moving average with upper and lower bands set at two standard deviations away, creating a dynamic price envelope that expands during high volatility and contracts during low volatility.