Maximize your Profits with Bollinger Bands
Bollinger Band Strategy is One of the Most Profitable Strategy Used by the Trades who earn lots of Money!!!
You can't just use Bollinger Bands to Trade and Earn Money as you need to confirm the Break Out Signal that you get after a Bollinger Band Squeeze.
Here are some tips how to confirm that:
1. Always looks for Bollinger Band Squeezes as you will find Price Break Outs most of the times
2. Use RSI to confirm the Price Break Out
3. Make sure RSI is not Overbought/Oversold to have a Major Price Break Out
4. Look for Bollinger Band Width to see whether its Rising as well
5. When there's a Major Price Break out it will go on for 1 -3hrs so you can take multiple entry points to Maximize your profits
6. Always check the Support/Resistance levels as there's possibility of the Price reversing the other way
7. I would also recommend to check the investing.com and look for Strong Buy/Sell Signal before you enter your Trade
8. There will be fake break outs where the price go the otherway
9. You can have stop losses and enter the Trades on the otherway if there's a fake breakout
Few other Tips to Enhance the above:
1. Use default MACD to reconfirm the Trend Direction (Thanks for the Idea from HamzaLeith)
2. Check the Direction of the Upper/Lower Bands.
For Bullish reversal's and continuations (opposite is true for bearish reversals or continuations)
1.) Price approaches the Buy Zone and the upper and lower bands remain flat. Reversal - Likely a sharp reversal to the lower band. Because both bands are flat this will likely be short lived.
2.) Price approaches the Buy Zone and the upper band goes up and the lower band is flat or moving up slightly. Continuation - Price will likely continue up slowly for a time.
3.) Price approaches the Buy Zone and the upper band goes up and the lower band goes down. Continuation - Price will likely move up fast and furious. This is the best continuation pattern for the bands. This is a rapid expansion of volatility. You will experience "fake out's" sometimes but most of the time this set-up will produce some good profits when executed properly.
4.) Price approaches the Buy Zone and the upper and lower bands both go down. - Reversal - This is likely to result in a reversal
Source: www.eezybooks.com/St...ger-bandssecret.aspx
Summary: Use RSI / Bollinger Band Width & MACD Indicators to Confirm the Signal
Hope this Helps Anyone who like to maximize the profits
You can't just use Bollinger Bands to Trade and Earn Money as you need to confirm the Break Out Signal that you get after a Bollinger Band Squeeze.
Here are some tips how to confirm that:
1. Always looks for Bollinger Band Squeezes as you will find Price Break Outs most of the times
2. Use RSI to confirm the Price Break Out
3. Make sure RSI is not Overbought/Oversold to have a Major Price Break Out
4. Look for Bollinger Band Width to see whether its Rising as well
5. When there's a Major Price Break out it will go on for 1 -3hrs so you can take multiple entry points to Maximize your profits
6. Always check the Support/Resistance levels as there's possibility of the Price reversing the other way
7. I would also recommend to check the investing.com and look for Strong Buy/Sell Signal before you enter your Trade
8. There will be fake break outs where the price go the otherway
9. You can have stop losses and enter the Trades on the otherway if there's a fake breakout
Few other Tips to Enhance the above:
1. Use default MACD to reconfirm the Trend Direction (Thanks for the Idea from HamzaLeith)
2. Check the Direction of the Upper/Lower Bands.
For Bullish reversal's and continuations (opposite is true for bearish reversals or continuations)
1.) Price approaches the Buy Zone and the upper and lower bands remain flat. Reversal - Likely a sharp reversal to the lower band. Because both bands are flat this will likely be short lived.
2.) Price approaches the Buy Zone and the upper band goes up and the lower band is flat or moving up slightly. Continuation - Price will likely continue up slowly for a time.
3.) Price approaches the Buy Zone and the upper band goes up and the lower band goes down. Continuation - Price will likely move up fast and furious. This is the best continuation pattern for the bands. This is a rapid expansion of volatility. You will experience "fake out's" sometimes but most of the time this set-up will produce some good profits when executed properly.
4.) Price approaches the Buy Zone and the upper and lower bands both go down. - Reversal - This is likely to result in a reversal
Source: www.eezybooks.com/St...ger-bandssecret.aspx
Summary: Use RSI / Bollinger Band Width & MACD Indicators to Confirm the Signal
Hope this Helps Anyone who like to maximize the profits