How to trade using Bollinger Bands
You might have heard the saying "The Trend Is Your Friend" and that you should "Trade The Trend."
But sometimes this is easier said than done. In this article I will show you an easy easy to identify and trade the trend.
Since the mid 90s I have been using technical analysis in my trading. When using technical analysis, there are two different approaches:
Examples of indicators are moving averages, Bollinger Bands, MACD, RSI, etc.
So which approach is "better"? Should you use chart patterns or indicators to identify the direction of the market?
Easy answer: Use the approach that works for YOU. I personally use indicators. I like the black-and-white approach of indicators. As an example, the RSI is either above 70 or it is not. There's no grey area. I openly admit that I struggle identifying chart patterns while they are forming. Don't get me wrong: I am an expert showing you every single chart pattern there is at the end of the day. But I can't identify them with certainty while they are forming. But hey,..
But sometimes this is easier said than done. In this article I will show you an easy easy to identify and trade the trend.
How To Identify A Trend
Way back in the 90s I used fundamental analysis to try and predict the market. Long story short, it didn't work for me.Since the mid 90s I have been using technical analysis in my trading. When using technical analysis, there are two different approaches:
- Chart Patterns and
- Indicators
Examples of indicators are moving averages, Bollinger Bands, MACD, RSI, etc.
So which approach is "better"? Should you use chart patterns or indicators to identify the direction of the market?
Easy answer: Use the approach that works for YOU. I personally use indicators. I like the black-and-white approach of indicators. As an example, the RSI is either above 70 or it is not. There's no grey area. I openly admit that I struggle identifying chart patterns while they are forming. Don't get me wrong: I am an expert showing you every single chart pattern there is at the end of the day. But I can't identify them with certainty while they are forming. But hey,..
You might have heard the saying "The Trend Is Your Friend" and that you should "Trade The Trend."
But sometimes this is easier said than done. In this article I will show you an easy easy to identify and trade the trend.
Since the mid 90s I have been using technical analysis in my trading. When using technical analysis, there are two different approaches:
Examples of indicators are moving averages, Bollinger Bands, MACD, RSI, etc.
So which approach is "better"? Should you use chart patterns or indicators to identify the direction of the market?
Easy answer: Use the approach that works for YOU. I personally use indicators. I like the black-and-white approach of indicators. As an example, the RSI is either above 70 or it is not. There's no grey area. I openly admit that I struggle identifying chart patterns while they are forming. Don't get me wrong: I am an expert showing you every single chart pattern there is at the end of the day. But I can't identify them with certainty while they are forming. But hey,..
Continue Reading
But sometimes this is easier said than done. In this article I will show you an easy easy to identify and trade the trend.
How To Identify A Trend
Way back in the 90s I used fundamental analysis to try and predict the market. Long story short, it didn't work for me.Since the mid 90s I have been using technical analysis in my trading. When using technical analysis, there are two different approaches:
- Chart Patterns and
- Indicators
Examples of indicators are moving averages, Bollinger Bands, MACD, RSI, etc.
So which approach is "better"? Should you use chart patterns or indicators to identify the direction of the market?
Easy answer: Use the approach that works for YOU. I personally use indicators. I like the black-and-white approach of indicators. As an example, the RSI is either above 70 or it is not. There's no grey area. I openly admit that I struggle identifying chart patterns while they are forming. Don't get me wrong: I am an expert showing you every single chart pattern there is at the end of the day. But I can't identify them with certainty while they are forming. But hey,..
posted by Bramesh at
11:58 AM
0 Comments:
Post a Comment
Note: Only a member of this blog may post a comment.
Subscribe to Post Comments [Atom]
<< Home