Here I would be talking about how one can use Bollinger bands
. This strategy works more better in volatile markets so using it in illiquid instruments may not be a good idea. You can either go short or long using this strategy. Here how you can use it.
Rule for taking long position:
when price goes below lower bollinger band
is in oversold zone then it can be a great opportunity to go long.
Rule for taking short position:
when price goes above upper bollinger band
&RSI is in overbought zone then it can be a great opportunity to go short.