#1 Because the initial move was a failure which resulted in X to pull back, I assume it came up, tested the 20 and rolled over. #2 I See some consolidation on right at that price level. I think a punch through is obviously to the upside, a continuatio of the trend. I just cant see 56 that strong to stall it. So higher. #3 I'm looking for this one to roll, test the 20 and more than likely trade back through it to continue the trend down. Or the 20 provides support and it trades through the peak. Lets see em
Bollinger Bands are the most important indicator on a chart and are nearly essential for successful trading. Thank you for your time.--Izzy
Cool idea! First one, I wouldn't do anything as this is what i call the middle ground and a favorite hangout for market makers. Second one I wouldn't do anything for the same reasons. Third one is a sell when the next candlestick crosses above the upper bb again.
I'll chip in. I'm late to this little thread which is a shame, I love bollinger bands and I could probably trade with them exclusively if I had to. Here's a little secret: Pay attention to the curvature. A lot of people get caught up about touches and bounces and all that, it really isn't that big a deal, the curving of the bands is very important. Remember its a lagging indicator, but that's what makes it so beautiful if you can draw the picture from the curves. Just a little tidbit. -troll
I think BB is comprehensive indicator, because u can see the S/R,, volatility, price action in one shot. The BB curve give important signs for the dynamics of the price actions (running or slowing down) too. Problem is thet hard to implement it in a semi or full automated system. I would be interested in scaling in formulas and volume dynamics to decrease the loss on false breaks (if break out system used).
To me BB works as a great tool in Analysis. A potential breakout of a choppy trade action or a consolidation can be marked with a combination of other tools. U may use a lower SD BB with MFI of a great help