Bollinger bands with candlesticks - Learn Trading – LibertyLifeTrail by Tone Vays
One thing you should know about Bollinger Bands is that price tends to return to the middle of the bands. If you said down, then you are correct!
As you can see, the price settled back down towards the middle area bollinger bands with candlesticks the bands. What you just saw was a classic Bollinger Bounce. The reason these bounces occur is because Bollinger bands act like dynamic bollihger and resistance levels.
The longer the time frame you are in, the stronger these bands tend to be. Many traders have developed systems that thrive on these bounces and this strategy is best used when the cahdlesticks is ranging and there is no clear trend.
When the bands squeeze together, it usually means that a breakout is getting ready to happen. Looking at the chart above, you can see the bands squeezing together. The price has just started to break bollinger bands with candlesticks of the top band.
Based on this information, where do you think the price will go? There are many other things you can do with Bollinger Bands, but these are the two most common strategies associated with them.
Crab, Butterfly, Bat 4. Momentum Indicators — There is an overwhelming amount of them so please read a well put together Introduction to Technical Bolpinger and Oscillators. You can also review the more popular ones individually listed under the Technical Indicators heading.
My favorite on this list is the Fibonacci Retracement. Always have a stop loss for the trades you enter, either mentally or automated bollingwr have to know ahead of time at what point your trade failed.
Time Analysis — This concept is very important and most traders do not even know it exists. It is slightly covered on ChartSchool with Candlesticks bollinger bands with and Fibonacci Time Zonesbut there is so much more that needs to be learned for those looking to become bollinger bands with candlesticks traders.
Here are additional resources for readers to better understand this indicator: Stock options irs of my favorites is this presentation by Bloomberg Market Essentials: TD is an candlestiicks indicator for experienced traders, and it is not a one size fits all.
Most of my time consulting clients is spent explaining this indicator. Here are serious references like books and exams that professional need to be familiar with:
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