How to trade with Bollinger Bands
Price moves in upper bands channel – uptrend, lower - downtrend
It is very simple to identify dominating price direction by simply answering the question: in what part of the Bollinger bands the price is currently trading? If price stays above the middle line – in the upper
channel – we’ve got a prevailing uptrend. If below the middle line – in the lower channel – we have a prevailing downtrend.
And just in case you’ve missed the beginning of the trend, Bollinger bands can help you get in the trend with good risk to reward ratio on a pullback. Simply look for dips towards the middle Bollinger bands line and enter in the direction of the trend.
Price moves in upper bands channel – uptrend, lower - downtrend
It is very simple to identify dominating price direction by simply answering the question: in what part of the Bollinger bands the price is currently trading? If price stays above the middle line – in the upper
channel – we’ve got a prevailing uptrend. If below the middle line – in the lower channel – we have a prevailing downtrend.
And just in case you’ve missed the beginning of the trend, Bollinger bands can help you get in the trend with good risk to reward ratio on a pullback. Simply look for dips towards the middle Bollinger bands line and enter in the direction of the trend.
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