Each highlighted area marks the constriction of the BB. This constriction can be taken to signal an impending large move, however, we never know which direction.
Lately I’ve noticed whenever the bb constriction occurs, price falls below the MA and begins breaking down through the lower BB. In each case, however, at a point when many interpret this as a short signal, without warning, the trend reverses and moves higher.
Thoughts
Lately I’ve noticed whenever the bb constriction occurs, price falls below the MA and begins breaking down through the lower BB. In each case, however, at a point when many interpret this as a short signal, without warning, the trend reverses and moves higher.
Thoughts
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.