What indicators work with Bollinger Bands?

There are several indicators created to work with Bollinger Bands to help make further inferences about trend reversals and price breakouts. Some of the most common indicators used by traders are BandWidth, %b, and BBTrend, all of which were created by John Bollinger. BandWidth is the measure of the width of the bands relative to the middle band.

Can Bollinger Bands be customised?

As most technical analysis indicators, Bollinger Bands can be customised if you modify the initial parameters, for example: Changing the Periods of the SMA and making it instead of 20, a 50 SMA. Changing the Standard Deviation Multiplier (this answers the question of how many standard deviations you want to use in your Bollinger Bands).

Are RSI & Bollinger Bands good for divergence trading?

They are easy to spot in hindsight but trading them in real time can be quite a challenge. Using a combination of the RSI and the Bollinger bands, traders are able to fine tune their skills when it comes to divergence trading. The main trick is in looking at the slope of the Bollinger bands and spotting for divergence opportunities.