Bollinger bands plot a moving average in the middle, and the extreme bands are formed by standard deviation lines around that moving average. Identifying a trending market with Bollinger bands is very simple. If the market is trending up, price will walk up the upper band. At just a glance, you can tell if the market is trending or stuck in a range.

If the market is trending down, price will walk down the lower band. You can tell if the market has hit extreme prices or if it is about to explode. USD/CAD falls close to 1.2100 and reaches fresh 10-weeks low - USD/CAD has fallen around 120 pips along the European session from 1.2229 to reach 1.2111, fresh highest since January 28.Currently, the pair is trading around 1.2130/40 after falling around 0.50% from 1.2193 opening price. So I want to show you a simple trading strategy that relies heavily on Bollinger bands. And, oh yeah, it makes pretty good money. You don't have to know how to calculate them the indicator does that.

They are very simple to use, they are free, and they are extremely reliable. One of the best forex indicators is Bollinger Bands.

Now don't be scared by the algebraic term standard deviations.