Saturday, October 1

Trading using Bollinger Band

In Continuation with Previous Article Introduction to Bollinger Bands
Bollinger Band Trading Strategies
  • Bollinger Bands to identify tops and bottoms
  • Trend Following
  1. Bollinger Bands to identify tops and bottoms

Bollinger Band can be sued to identify potential tops and bottom in the stock/ETF. Following 3 points should be kept in mind to identify potential tops and bottom
  • A trending price move beyond the upper band
  • A pullback towards the middle of the Bollinger Bands
  • Another move higher (past the previous price high) but not closing above the upper end of Bollinger Bands
A Bollinger Band top signals losing momentum in an uptrend. It is important to remember that closing prices are more important when using Bollinger Bands to understand the signal.


Continue Reading

0 Comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to Post Comments [Atom]

<< Home