Bollinger bands squeeze pdf


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This level of mastery only comes from placing hundreds if not thousands of trades with the same markets on the same time frame.

Bollinger Band® Definition | Investopedia

How do I trade it?
Its the same trick!
We wait for the long hammer candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the hammer candle.
and again trailed to follow the trend.

Bollinger Bands® | Forex Indicators Guide

Below is code for the Advanced Scan Workbench that Extra members can copy and paste. This code divides the difference between the upper band and the lower band by the closing price, which shows BandWidth as a percentage of price. In general, BandWidth is narrow when it is less than 9% of price. Chartists can use higher levels to generate more results or lower levels to generate fewer results.

Bollinger Bands® are not a standalone trading system. They are simply one indicator designed to provide traders with information regarding price volatility. John Bollinger suggests using them with two or three other non-correlated indicators that provide more direct market signals. He believes it is crucial to use indicators based on different types of data. Some of his favored technical techniques are moving average divergence/convergence (MACD), on-balance volume and relative strength index (RSI).

If you like this strategy and want to learn more about it, I advise you join Wayne McDonell Forex Today Strategy Session videos. Wayne is most definitely the master of role reversal trading. I advise you watch all his videos. There is something to learn for you in each one of them.

Approximately 95% of price action occurs between the two bands. Any breakout above or below the bands is a major event. The breakout is not a trading signal. The mistake most people make is believing that that price hitting or exceeding one of the bands is a signal to buy or sell. Breakouts provide no clue as to the direction and extent of future price movement.

Sometimes the price will pull back a bit further than just the former support or resistance. It might retrace toward other important technical levels.

The second strategy is a trend-following strategy I picked up from Nick Radge's book Unholy Grails , where he uses 655-day Bollinger Bands to capture trend momentum. The rules are simple:

In this example you can see how Apple Computers reaches the lowest Band-Width level in 6 months and one day later the stock breaks outside of the upper band. This is the type of set ups you want to monitor on a daily basis when using the Band-Width indicator for Squeeze set ups.

Strategies include Momentum and Role Reversal, Heikin-Ashi, RSI and Moving Average Crossover, Candlesticks and more. This E-Book contains step-by-step instructions, examples to teach you how to trade profitably.


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