The Bollinger Band Tool Kit for AlphaTrade is a tool kit for investors and traders wishing to explore the potential of Bollinger Bands. Included are 32 indicators and a chart template to get you going.

For in-depth explanations of the tools included in this kit we strongly recommend that you read "Bollinger on Bollinger Bands." The key concepts are explained there and the various approaches fully delineated. If you do not already have a copy, you can click here to order an autographed copy. This introduction focuses on the details of the Tool Kit but does not attempt to replicate the contents of the book.

There is one approach included in the tool kit that is not discussed in the book, Method IV. This method requires that volatility be relatively low--in the lowest quartile of the immediately prior six-month range. Then we look for the following breakout sequence: Day one, a close inside the bands. Day two, a close outside the bands. Day three, price action that exceeds the close of day two for an upside breakout or undercuts the close of day two for a downside breakout. Method IV conditions may be tightened by requiring that the high of day two be exceeded, or the low undercut, rather than the close. Method IV may be of special interest to shorter-term and swing traders.

The potential of the tools in this kit is practically unlimited, what you do with them is entirely up to you. These tools have been designed to offer the maximum flexibility and therefore the greatest potential. Some of the tools are free standing and can be used on their own, while others are of greater worth when combined with other tool kit elements or other analytical tools.

While there are four example systems included in this tool kit, this package is not and was not meant to be, a trading system. Rather it is a tool kit that allows you to create your own trading systems and analysis.

We have tried to imagine everything you might want to do with Bollinger Bands and prepare for any eventuality. However, the possibilities are literally limitless. So, if there is a tool you'd like to see added to the kit, or something you feel should be changed, drop us a note with your suggestion at bbtk@BollingerBands.com.