Education Maximize your Profits with Bollinger Bands. Here are some tips how to confirm that: 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. I would also recommend to check the investing. 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: 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. 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.
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. Price approaches the Buy Zone and the upper and lower bands both go down.
Thanks for this post. Working on a complet signal algo including all of this. Now with addition of BB with Std Deviation 1 has improved by script. It works great for Futures. This is a great article on reversal trading signals with Bollinger bands Guys I wanted to show you something very typical of the use of bollinger bands.
It is called a head fake. After the squeeze of the bollinger bands a breakout always occurs. However what is very characteristic with bollinger bands is that many times trades get "tricked" regarding the direction of the breakout by something called a Head Fake. Take a look at a chart and let me know when you don't understand what I mean or perhaps disagree with with me so we can all learn.. Sorry here is the right image This is what I think is the best to over come this. If anyone can Contribute their ideas to enhance this it will help anyone who is interested with this Strategy I guess.
I'm Using this example to Discuss this HeadFake: From the creators of MultiCharts. Select market data provided by ICE Data services.More...