Bollinger Bands Buy/Sell

Bollinger Bands Overview
Definition:
Bollinger Bands are a technical analysis tool that consists of a middle band and two outer bands.
The middle band is typically a simple moving average (SMA), while the outer bands are placed two standard deviations away from the SMA.
Components
Middle Band:
Usually a 20-period SMA.
Upper Band:
Middle band + (2 x standard deviation).
Lower Band:
Middle band - (2 x standard deviation).
Buy Signals
Price Touches Lower Band:
When the price touches or dips below the lower band, it may indicate that the asset is oversold and can signal a potential buy opportunity.
Bullish Divergence:
If the price makes a lower low while the indicator (like RSI or MACD) makes a higher low. This can signal a future price increase.
Sell Signals
Price Touches Upper Band:
When the price touches or exceeds the upper band, it could suggest that the asset is overbought, signaling a potential sell opportunity.
Bearish Divergence:
When the price makes a higher high while the indicator makes a lower high. This might indicate a price drop in the near future.
Trading Strategy Tips
Avoid Trading in Ranges:
In sideways markets, Bollinger Bands are often unreliable. Consider waiting for a breakout.
Confirmation:
Always look for additional confirmation through other indicators before making a trade decision.