Using Bollinger Bands for short term trading

This is not a complete explanation of a trading approach, however it is useful to see how these moves play out.

These particular moves played out nicely.

This chart only has a 50 period Bollinger Band and a 20 period Moving Average

Notice after the second pattern, after the move to the middle band, there were 3 equal bottoms. When they broke, price actually moved past the lower band (not shown on chart)

 

Capture

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s