ANALYZING THE EFFECTIVENESS OF MOVING AVERAGE AND BOLLINGER BANDS IN TRADINGSTRATEGIES

This study examines the effectiveness of Moving Averages (MAs) and Bollinger Bands (BBs) in trading
strategies, focusing on Apple Inc. (AAPL) and Reliance stocks. By testing different MA periods (10-day, 50-day, 100-
day) and BB deviations (1.5, 2, 2.5), the research evaluates impacts on profitability, win rates, and risk-adjusted returns.
Backtesting over 5–10 years of daily data reveals that shorter MAs outperform on volatile stocks like AAPL, while longer
MAs suit more stable stocks like Reliance. Additionally, customizing BB deviations according to stock volatility
significantly enhances trade signal accuracy. Integrating MAs and BBs together reduces false signals and improves
trading outcomes across both trending and range-bound markets. These findings offer actionable insights for traders
seeking to optimize technical strategies and contribute to academic literature by systematically testing non-standard
indicator settings.