The Most Accurate Strategy Indicator

The Secret of the Most Accurate Indicator Settings (Bollinger Bands)

The most accurate trend indicator that is often used by traders is the Bollinger band, what more if the indicator is combined with other indicators.But in my opinion all indicators are good, but it depends on us using it.

Indeed, to study indicators we must digest candlestick patterns.
The Most Accurate Strategy Indicator
Bollinger Bands indicator

What is the Bollinger Bands indicator ?

 Bollinger Bands is an indicator that is useful to help measure market volatility and estimate the range of normal price movements (range).

Explanation of Bollinger Bands Indicators 

Bollinger Bands consist of 3 lines:
  1.  Upper Bands Lines
  2.  Middle Line Middle Line
  3.  Lower Bands Line (Bottom Line)

Strategies for Using Bollinger Bands Indicators

1. Bounce Trading Strategy

This simple strategy utilizes Upper Bands Lines and Lower Bands Lines as support and dynamic support.
  • Upper Bands as dynamic resistance
  • Lower Bands as dynamic support
  • Middle acts as a target 
 Price movements will tend to bounce back to the middle (middle) after the price reaches the upper line (Upper) or the lower line (lower)
 
  •  This movement pattern that we will use to take a trading position. The way is we will take entry
  •  CALL / UP, When the Red candlestick reaches the bottom line (Lower), wait for the confirmation of the Green candle
     PUTT / DOWN, when the Green Candlestick reaches the upper line, wait for confirmation of the appearance of a Red candle 
Open position
a note:
This bounce technique strategy is effective if it is used when the market is moving stable / sideway.

2. Breakout Trading Strategy

With bollinger bands, we can find out opportunities for breakout.

 Bollinger bands tend to narrow if the market is quiet, which means market participants are not sure where they will be taken.The Seller and The Buyer are just as strong, eventually the price moves within a narrow distance. The movement of Bollinger bands also narrows.

  This is the moment that we will use to take trading positions.

  •  CALL / UP, if the upper band line is broken by the price

  •  PUTT / DOWN, if the Lower band line is broken by the price

 Keep in mind Bollinger bands indicators are not indicators that are 100% always right, so to minimize errors would be better if combined with other indicators.

The Most Accurate Strategy Indicator The Most Accurate Strategy Indicator Reviewed by TRADING TRICK on November 18, 2019 Rating: 5

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