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- Top 6 Bollinger Bands Trading Strategies - Learn How to Trade
In addition to strategies, there are a few items related to bollinger bands I need to cover that will provide you with a full picture of the indicator. These are not hard fast rules, but things you need to consider as you validate if the indicator is a good fit for you and your trading style.
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Instead of taking the time to practice, I was determined to turn a profit immediately and was testing out different ideas.
Top 6 Bollinger Bands Trading Strategies - Learn How to Trade
I just struggled to find any real thought leaders outside of John. I write this not to discredit or credit trading with bands, just to inform you of how bollinger bands are perceived in the trading community.
In the previous section, we talked about staying away from changing the settings. Well, if you really think about it, your entire reasoning for changing the settings in the first place is in hopes of identifying how a particular security is likely to move based on its volatility.
Now, looking at this chart, I feel a sense of boredom coming over me. That's because it's far more entertaining to tell yourself and others you crushed a 75% day trade in one day.
Regardless of the trading platform, you will likely see a settings window similar to the following when logging into the application.
I am still unsure what this means exactly. With there being million of retail traders in the world, I have to believe there are a few that are crushing the market using bollinger bands.
Check out this quick video on bollinger bands. The video will help you familiarize yourself with the indicator and provide a general overview of trade setups before we dig into the advanced strategies.
The key to this strategy is waiting on a test of the mid-line before entering the position. You can increase your likelihood of placing a winning trade if you go in the direction of the primary trend and there is a sizable amount of volatility.
The key to this strategy is a stock having a clearly defined trading range. This way you are not trading the bands blindly, but are using the bands as a means to gauge when a stock has gone too far.