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

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