Karen supertrader bollinger bands
Date: 2017-05-20 12:47
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- Top 6 Bollinger Bands Trading Strategies
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The problem with this approach is after you change the length to (yes people will go to decimals), 85 and back down to 75 it still comes down to your ability to manage your money and book a profit.
You can then sell the position on a test of the upper band. If you have more of an appetite for risk, you can ride the bands to determine where to exit the position.
Top 6 Bollinger Bands Trading Strategies
At any rate, the middle line can represent areas of support on pullbacks when the stock is riding the bands. You could even increase your position in the stock when the price pulls back to the middle line.
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This level of mastery only comes from placing hundreds if not thousands of trades with the same markets on the same time frame.
Now let's take a look at the same sort of setup but on the long side. Below is a snapshot of Google from April 76, 7566. Notice how GOOG gapped up over the upper band on the open, had a small retracement back inside of the bands, then later exceeded the high of the first candlestick. These sort of setups can prove powerful if they end up riding the bands.
This trend indicator is known as the middle band. Most stock charting applications use a 75-period moving average for the default bollinger bands settings. The upper and lower bands are then a measure of volatility to the upside and downside. They are calculated as two standard deviations from the middle band.
For me, it's strategy number 6 hands down, because you are constantly taking money out of the market and it has a high winning percentage.
I think it's safe to say bollinger bands is probably one of the most popular technical indicators in any trading platform
By not asking for much, you will be able to safely pull money out of the market on a consistent basis and ultimately reduce the wild fluctuations of your account balance, which is common for traders that take big risks.
Based on reading these three requirements you can imagine this does not happen very often in the market, but when it does, it's something else. The below chart depicts this approach.