From what i see bollinger bands are contracting, there has been a bearish trend for the past week, its currently hit its lowest point as identified from the support line, my prediction would be a bullish trend.
Hello salv,
If you look again, I think you will see that the bands are Expanding.
The bands are not a signal. Normally they are confirming or alerting.
Looking at the bars, normally you could expect 3 bars down, at least, before you might get a signal.
Then you will be looking for (for example) a Morningstar, or engulfing or bullish harami (to name a few).
Also, RSI has not reversed direction yet.
These are all warnings to hurry up and WAIT! Patience is the key.
Do NOT try and pre-empt. It will cost you money.
Do NOT try and call a bottom. It will cost you money. (catching a falling knife so to speak)
The clues are the spinning top and marabozu bars at the point where your first downtrend line commences. Note how the upper wicks pierce the upper BB but the bar remains inside the BB. This says that the sellers were in control; the buyers had little confidence. Then the buyers retreated and the sellers whacked 'em.
Also remember the BBs are a function of price, so they will go where price goes - NOT the other way round!
So look and wait for BBs to slow their drop and move sideways to up (consolidate). Look and wait for those lower pins to form to say buyers are returning and sellers are tiring.
Get an 8 period EMA on your chart.
Always trade in the direction of the trend!. To find the trend stick a 50 and a 20 sma on your chart and see which direction they point. That is the trend. Look and wait for 8 > 20 > 50 crosses. These are alerts and SIGNALS.
BB's and RSI should confirm. Keep losses small - Always have a "This is not right point" and get out. You can always get back in when you still have funds.
This should help keep some funds in your bank account and maybe even win a trade or two. I just wish someone had told me all this stuff years ago.
Good trading. If you need luck (or hope), then you are doing something wrong.
If you look again, I think you will see that the bands are Expanding.
The bands are not a signal. Normally they are confirming or alerting.
Looking at the bars, normally you could expect 3 bars down, at least, before you might get a signal.
Then you will be looking for (for example) a Morningstar, or engulfing or bullish harami (to name a few).
Also, RSI has not reversed direction yet.
These are all warnings to hurry up and WAIT! Patience is the key.
Do NOT try and pre-empt. It will cost you money.
Do NOT try and call a bottom. It will cost you money. (catching a falling knife so to speak)
The clues are the spinning top and marabozu bars at the point where your first downtrend line commences. Note how the upper wicks pierce the upper BB but the bar remains inside the BB. This says that the sellers were in control; the buyers had little confidence. Then the buyers retreated and the sellers whacked 'em.
Also remember the BBs are a function of price, so they will go where price goes - NOT the other way round!
So look and wait for BBs to slow their drop and move sideways to up (consolidate). Look and wait for those lower pins to form to say buyers are returning and sellers are tiring.
Get an 8 period EMA on your chart.
Always trade in the direction of the trend!. To find the trend stick a 50 and a 20 sma on your chart and see which direction they point. That is the trend. Look and wait for 8 > 20 > 50 crosses. These are alerts and SIGNALS.
BB's and RSI should confirm. Keep losses small - Always have a "This is not right point" and get out. You can always get back in when you still have funds.
This should help keep some funds in your bank account and maybe even win a trade or two. I just wish someone had told me all this stuff years ago.
Good trading. If you need luck (or hope), then you are doing something wrong.
... just my 2c worth ...