EFFICIENCY OF USING TECHNICAL INDICATORS AS A TOOL FOR PREDICTING FUTURE PRICE MOVEMENTS

Trading on the financial market today is one of the activities that has seen a high increase in popularity in both the professional and non-professional community, which can be attributed primarily to the rapid and significant progress in the financial and IT sectors. However, trading itself is a very complex activity, based on continuous market data analysis, decision making and risk control. Nowadays, there are many methods and methods available on the market, which are used by market participants themselves to predict price development. Technical and fundamental analysis can be considered the two most commonly used methods of financial market data analysis. Our paper deals with the mathematical indicator of technical analysis Bollinger bands. In the first chapter of our paper we developed a theoretical apparatus as a basis for further application of this indicator. The second chapter is focused on the description of the application itself and the research of acquired data. We introduced the time period of the application, the market and also the rules for evaluating the effectiveness of this indicator. In the third chapter we presented the obtained data and their interpretation. The last chapter of our paper are suggestions and recommendations. The aim of the whole paper was to assess the effectiveness of using the indicator Bollinger bands as a tool to predict future price movements.