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  • Bollinger Bands Overview

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    - If Bollinger bands are contracting on a time frame (TF), the market is currently ranging. When the bands squeeze, price action (PA) needs to break through and hold outside the bands to widen them again or a reversal is likely. - Bollinger Band Width works on any timeframe. Look for horizontal levels where price routinely expands to anticipate volatility. Volatility lags significantly, drying up volume and orders and allowing movements away from typical behavior. - Identify up to 3 points where past volatility bounced to find areas of potential future volatility based on confluence. Trendlines can also be added.

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    Overview of BBs and BB width

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    - If Bollinger bands are contracting on a time frame (TF), the market is currently ranging. When the bands squeeze, price action (PA) needs to break through and hold outside the bands to widen them again or a reversal is likely. - Bollinger Band Width works on any timeframe. Look for horizontal levels where price routinely expands to anticipate volatility. Volatility lags significantly, drying up volume and orders and allowing movements away from typical behavior. - Identify up to 3 points where past volatility bounced to find areas of potential future volatility based on confluence. Trendlines can also be added.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    14 views4 pages

    Bollinger Bands Overview

    Uploaded by

    scribd
    - If Bollinger bands are contracting on a time frame (TF), the market is currently ranging. When the bands squeeze, price action (PA) needs to break through and hold outside the bands to widen them again or a reversal is likely. - Bollinger Band Width works on any timeframe. Look for horizontal levels where price routinely expands to anticipate volatility. Volatility lags significantly, drying up volume and orders and allowing movements away from typical behavior. - Identify up to 3 points where past volatility bounced to find areas of potential future volatility based on confluence. Trendlines can also be added.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    Bollinger Bands

    - If Bollinger bands are both contracting then that TF is currently ranging.

    - When the Bollinger Bands are squeezing, PA needs to breakthrough the Bollinger
    Bands on-close and hold outside of the bands to get the bands open and
    separating from each other or it becomes likely to see a spring reversal

    Ex: Fails

    Ex: Gets the bands


    (volatility) open
    Bollinger Band Width
    Works on any Timeframe.

    Look for Horizontal level on the indicator where price What happens and why does it work? Well, Volatility lags
    seems to routinely expand. significantly on a given timeframe, so volume dries up, which
    No magic, just looking at what normally occurs to get make ORDERS dry up which encourages some shenanigans.
    some clue as to some volatility.
    Usually put about 3 max points where
    volatility bounced and look for
    confluence.

    You can also put


    trendlines on.

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