Trading Using Bollinger Bands Strategy !
Classical Definition of Bollinger Band : A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences.
Now, How to trade using Bollinger Band Strategy?
Step 1 : Add 'Bollinger Bands' Indicator (inbuilt) from Indicator section to your chart.
Step 2 : Identify the 'Sideways Markets'. ( These conditions can be found during accumulation/distribution and repeat after every market cycle)
PRO TIP : Relative Strength Index (RSI) indicator can be used for confluence of sideways market. In sideways market, RSI is generally between 70-30.
Step 3. Buy the asset when it touches the lower band and sell the asset when it touches the upper band.
Chart Example :
Important Note : Always use proper risk management and put stop loss with every trade.
Disclaimer : This is an education post only. Buy or Sell at your own risk. We are not responsible for your profit or loss.
Classical Definition of Bollinger Band : A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences.
Now, How to trade using Bollinger Band Strategy?
Step 1 : Add 'Bollinger Bands' Indicator (inbuilt) from Indicator section to your chart.
Step 2 : Identify the 'Sideways Markets'. ( These conditions can be found during accumulation/distribution and repeat after every market cycle)
PRO TIP : Relative Strength Index (RSI) indicator can be used for confluence of sideways market. In sideways market, RSI is generally between 70-30.
Step 3. Buy the asset when it touches the lower band and sell the asset when it touches the upper band.
Chart Example :
Important Note : Always use proper risk management and put stop loss with every trade.
Disclaimer : This is an education post only. Buy or Sell at your own risk. We are not responsible for your profit or loss.
