Topic: Learn How to Trade Bitcoin using Bollinger Bands (Read 117 times)

yes, even better than the RSI is the B%, which is an oscillator John Bollinger invented to be used with the Bands

a little help I need to read more about bollinger bands, I only use a few indicators it seems to need to learn about bollinger bands, sometimes some traders often use analysis with this indicator unfortunately I don't understand much so I learned here, thanks for the useful article and still read deeper

Go to the thread of Gunbot and you will see a very good explanation of how Bollinger Bands works. If you see high volume and the price of that coin keeps going up, try to use Bollinger Bands to help you decide if its a good time to Buy and if you are holding the coin already, use it if the trend will continue or not. It looks like Bollinger Bands are good for day traders.

Hard to use this indicator when it comes to that head fakes that you mentioned. I have seen it most of the time with in forex market that reversal can happen after a break out of that squeeze. Its almost what I can consider a quick bull or bear trap for traders. Its the M and W that are easy to spot in the charts, it might be good to combine this indicator with RSI as well.

Developed by trading veteran John Bollinger in 1983, the tool has stood the test of time with Bollinger himself frequently analysing and commenting on the cryptocurrency market.

Overview

-Bollinger Bands are based on volatility, which is cyclical and predictable. Low volatility environments eventually lead to periods of high volatility, and vice versa.
-The Bollinger Bands are composed of a simple moving average (20-period by default) and an upper and lower band that are set to 2 standard deviation by default.
-‘W bottoms’ should be used to setup a long position and you should enter once there is a display of strength in the asset.
-‘M tops’ should be used to set up a short position but requires more confirmation than a bottom. Enter the short once there is a display of weakness.
-The ‘Bollinger Squeeze’ can be identified with Bollinger Bands and the BandWidth indicator. ‘The Squeeze’ allows us to identify and trade the breakout at the beginning of a trend.
-The ‘Bollinger Bounce’ is a reversal strategy. We look for a buy position once the price action touches the lower band, and an oscillator is positive. We look for a sell positions once the price actions touches the upper band, and an oscillator is negative.

What are the Bollinger Bands?

Bollinger Bands are curves drawn in and around the price structure consisting of a moving average (a middle band), an upper band and a lower band that enable you to identify whether the price of an asset is relatively high or low.

Read more here: https://medium.com/interdax/an-introduction-to-trading-bitcoin-with-bollinger-bands-9e484db9353b?source=friends_link&sk=6683033bb5cefd450aa209f087831de6