Bollinger bands strategy must be tried if you want to have a profitable result as a final goal. They Come with the ignal and accuracy which are not the same for the whole traders.
John Bollinger is the one who found this technique and that is why; he then used his name into this. Basically, it is almost the same with showing 3 different lines or band along the price movement.
The lines showed can be smaller or even bigger based on how volatile the market is. Usually, it is also due to the price fluctuation. You could say that those are so flexible so that good enough for many plans.
Try to apply this Bollinger bands strategy if you are a swing trading lover. It is better to find more informations about it because some points need to be learned properly.
Why this Bollinger Bands Strategy is Recommended?
This technique is actually not only for a swing trader, but also others. That is why; it becomes an added indicator as well for those who use the intraday type for a trading. It is more applied as a volume.
Usually, it is for oscillator where the overbought value is +1 and the limit of oversold is -1. Back again where you have to find a reversal signal first in order to apply this bollinger bands technique in a swing trading.
What does it mean? The meaning is that to focus on the moment when price is above and touch the upper band. Besides that, make sure that intraday intensity is in an overbought level.
Meanwhile, avoid a situation where price is going to lower band and when oversold signal is reached by the intraday intensity. Sometimes it looks hard, but with so many practices you will master bollinger bands strategy really well.
Inside Bar and Engulfing for this Technique
Traders must know that if a price patterns shows a reversal, it means that has to own a reversal formation at the same time. This kind of form make you to achieve a maximum result by using this indicator.
That is why; you should know the patterns of reversal candlestick for this case. First of all is engulfing. It has 2 different candlestick where the last one will engulf a part appeared before.
The unique thing about this patter is that the last candle which is larger than the previous one. For the traders, it is also essential for the technique we are talking about as well.
Another pattern is called inside bar where it is located inside a candlestick range before. That is why; the lowest and highest prices are usually not larger than the open and close ones.
Evening, Morning Star and Piercing
Morning or evening comes with 3 candles. The first one consists of inline formation which is the same like a trend direction came before. Then the second candlestick shows usually small and displays the certainty in market.
Piercing is also common for a bollinger bands strategy where it has a strong relationship to the bearish pattern. The line is usually bullish.
To practice the whole strategies like these, make sure to choose the best forex broker. They come with a great and complete facilities to support all the traders’ needs.
Combine it with Other Plans
It will be better if you combine the plans above with others. The example is choose a trusted broker such as Didimax. It has been on this industry for years and supported by the professional staffs only.
Didimax forex broker combines the latest technology in trading with all of it’s easiness. The deposit and withdrawal system can be done easily and also quickly.
Didimax forex broker is supported by 24/7 customers service who will help you to solve various issues and answer any questions. Don’t wait too long, join Didimax and practice your bollinger bands strategy better there.
