Efficiency of Bollinger Bands in Forward Operations for Agricultural Products in Vietnam

Abstract

U
 Using primary data collected from in-depth interviews with 11 practical experts who have been working in the commodity industry for 7 years on average and using the Bollinger Bands tool for 3 years at least, the article shows that Bollinger Bands' signs on price forecasts or making decisions to buy or sell in the future trading of agricultural products in Vietnam are highly appreciated because of their accuracy. In addition, by using the Analytical Hierarchy Process (AHP) approach, the research indicates that there is no big difference in the effectiveness of Bollinger Bands’ application in future transactions for coffee, corn, wheat, soybean and soybean oil. However, applying Bollinger Bands in coffee futures’ trading is the most effective. In addition, the study also emphasizes the combination of Bollinger Bands with other technical analysis tools such as RSI, MACD, Fibonacci, Ichimoku, and CCI, to improve transaction efficiency.