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    Bollinger Bands Presentation

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    armando6191
    Bandas Bollinger

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    Bollinger Bands Presentation

    Uploaded by

    armando6191
    3 views19 pages
    Bandas Bollinger

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Bandas Bollinger

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views19 pages

    Bollinger Bands Presentation

    Uploaded by

    armando6191
    Bandas Bollinger

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 19

    Bollinger Bands

    A band plotted two standard deviations away from a simple moving average.

    Because standard deviation is a measure of volatility, Bollinger Bands adjust


    themselves to the market conditions. When the markets become more volatile,
    the bands widen (move further away from the average), and during less
    volatile periods, the bands contract (move closer to the average).
    Bollinger Bands

    The tightening of the bands is often used by technical traders as an early


    indication that the volatility is about to increase sharply.

    This is one of the most popular analysis techniques. The closer the
    prices move to the upper band, the more overbought the market, and the
    closer the prices move to the lower band, the more oversold the market.
    Bollinger Bands Strategies
    Bollinger Bands Squeeze
    When the bands “squeeze” together, it usually means that a breakout is
    going to occur. If the candles start to break out above the top band, then the
    move will usually continue to go up. If the candles start to break out below
    the lower band, then the move will usually continue to go down.

    This strategy in trading Bollinger bands is designed to catch a move as early


    as possible.
    Bollinger Bands Bounce
    One thing you should know about Bollinger Bands is that price tends to
    return to the middle of the bands. That is the whole idea behind the Bollinger
    Bounce.

    The reason these bounces occur is because Bollinger Bands act like mini
    support and resistance levels.
    Double Bottom (the “W” Setup)

    In a double bottom scenario, a trader may have higher odds of


    success if the first low is touching or outside the lower band, then
    the price reacts and rises close to the middle band, and then the
    second low is inside the lower band.

    The second low may be higher or lower than the first low.
    But if the second low is within the lower band (even if it is lower
    than the first low), there is a double bottom, which may give
    traders more confidence buying on the second low.
    The Classic M Top

    In a Classic M Top, the first high is touching or outside the upper band,
    the reaction gets close to the middle band (the moving average); and the
    second high is inside the upper band. And again, the second high can be
    higher or lower than the first high. The fact that the second high is within
    the upper band suggests that it is a lower high on a relative basis.
    “Walking” or “Riding” the Bands

    In a sustained uptrend, there will be repeated touches of the upper band,


    and vice-versa while in a sustained downtrend there may be repeated touches
    of the lower band with some closes below it in a decline; this is called
    walking the bands.

    An effective signal to enter a trade would be once the price touches the
    Upper/Lower band and retests the SMA20

    Keep in mind that instances of “Walking the Bands” will only occur in strong,
    defined uptrends or downtrends

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