Bollinger Bands indicator for trading
The Bollinger Bands indicator is used to identify trading ranges and can help us find objective entry points for long or short positions.
Choose to go long when the price touches the lower band (DN) and go short when it touches the upper band (UP).
UP is generally a resistance line, and when the price touches UP, it is likely to fall, so choose to sell.
DN is generally a support line, and when the price touches DN, it is likely to rise, so choose to buy.
MB can be used as a resistance line or a support line. When the price moves between MB and DN, MB is a resistance line, and when the price moves between MB and UP, MB is a support line.
When all three lines are moving up, it is an uptrend channel, and you should primarily choose to buy for trading.
When all three lines are moving down, it is a downtrend channel, and you should primarily choose to sell for trading.
If the three lines are moving horizontally, then it is a sideways market, and you can trade according to the above methods.
These are the methods for using the Bollinger Bands indicator. I will share more methods for using indicators and welcome everyone to follow and exchange ideas.
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