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.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.