Forex trading-best way to use Bollinger Bands
Like Bollinger bands. I really do. And if not, will in a minute. What bands are trying to do for us? Have you ever thought about this?
They try to show relative high and low by the standard deviation. Why is knowing where high and low is so important to a trader? Give yourself an A + if you said because they want to buy low and sell high (or otherwise sell short high and buy low back).
Most of the time cost will live inside the bands. In fact 95% of the time will stay inside. When it pops out, it's your chance to take a fade trade (ie price going up fast, you sell and profit as it comes back to normal levels).
Yes, I know you told me that this trend is your friend, blah, blah, blah. Certainly that is true. But I like to think of something. Is the number of people who buy (or sell) at any given time unlimited? There are just a lot of traders who are willing to buy at a certain time. If the price has gone beyond the top of the Bollinger bands, that is way over extended.
Not many traders are going to want to buy only. The lack of buyers, where price will go? Down?
Exactly!
It is a very good trade. However, I should add one more remark. If you want to trade it, wait for price to drop out of the band. Then you must close the band back in the next bar. This confirms that it has run out of steam and goes your way. Enter the next open bar. Put a stop just outside the band Bollinger. Put your profit target before the mid bands (give a little room for error).
Want to learn more about how to trade? I just completed my brand new guide, "forex trading - that finally worked for me."
other posts
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- sliding channels mq4
- forex buy and sell signal indicator
- iinwmarrows mt4 ea
- the best fores system ever
Like Bollinger bands. I really do. And if not, will in a minute. What bands are trying to do for us? Have you ever thought about this?
They try to show relative high and low by the standard deviation. Why is knowing where high and low is so important to a trader? Give yourself an A + if you said because they want to buy low and sell high (or otherwise sell short high and buy low back).
Most of the time cost will live inside the bands. In fact 95% of the time will stay inside. When it pops out, it's your chance to take a fade trade (ie price going up fast, you sell and profit as it comes back to normal levels).
Yes, I know you told me that this trend is your friend, blah, blah, blah. Certainly that is true. But I like to think of something. Is the number of people who buy (or sell) at any given time unlimited? There are just a lot of traders who are willing to buy at a certain time. If the price has gone beyond the top of the Bollinger bands, that is way over extended.
Not many traders are going to want to buy only. The lack of buyers, where price will go? Down?
Exactly!
It is a very good trade. However, I should add one more remark. If you want to trade it, wait for price to drop out of the band. Then you must close the band back in the next bar. This confirms that it has run out of steam and goes your way. Enter the next open bar. Put a stop just outside the band Bollinger. Put your profit target before the mid bands (give a little room for error).
Want to learn more about how to trade? I just completed my brand new guide, "forex trading - that finally worked for me."
other posts
- aroon indikator formel in excel
- sliding channels mq4
- forex buy and sell signal indicator
- iinwmarrows mt4 ea
- the best fores system ever
