Here's how you can use Bollinger Bands to spot trading opportunities

It gives signals that can establish a potential trade. The accuracy is decent and the trader needs to be on his toes to capture the price move.

Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity and were invented by John Bollinger, who charted two standard deviation lines around the simple moving average (SMA) to identify the deviation in price. The line above the SMA is denoted as upper Bollinger line and the line below as lower Bollinger band. Normally, the simple moving average is 20-day SMA and acts as a middle level between the two bands.

Traders can modify the standard deviation values depending on their preferences. However, the traditional value -- which is