USING THE INFAMOUS HAS ALWAYS BEEN A INCREDIBLE TOOL FOR TRADERS!
Using the bollinger bands for signals using a custom standard deviation is how this indicator will give its signals to you:]
Always use this at your own risk, no indicator is fail proof, always use it as a tool, not a end all be all!
So lets get into it!
YOU WILL BE PROVIDED WITH 2 SIGNALS!
1ST SIGNAL FOR LONGING/BUYING THE PRICE WILL = A LIME GREEN ARROW UNDER A BAR CALLING OUT |U.S.A|
THE 2ND SIGNAL YOU WILL BE GIVEN IS THE SHORT/SELLING SIGNAL WHICH = A RED ARROW ABOVE A BAR CALLING OUT |C.C.P| WHICH IN TURN MEANS POTENTIAL SHORTING/SELLING OPPORTUNITY HAS ARISED.
3RD There also are Take profit Points Identified by A TEAL horizontal line SAYING "TPROF1"
4TH IS A "potential" STOP-LOSS Point for the Long/short Trade signal identified by a horizontal BLUE line saying "STOP"
5TH AND FINAL TOOL on this indicator is the another horizontal Line in WHITE saying "AIM" which is a potential "TAKE PROFIT AREA FOR YOUR TRADE"
Bollinger bands and how they work....
are a tool defined by a set of plotted two standard deviations
(positively and negatively)
away from a or otherwise known as the ( )
of a security's price,
but which can be adjusted to user preferences.
were developed and copyrighted by famous technical trader John , designed to discover opportunities that give investors a higher probability of properly identifying when an asset is oversold or overbought.
One of the most important ways to use the BBANDS are using THE SQUEEZE from the BBANDS
The squeeze is the central concept of .
When the bands come close together, constricting the moving average, it is called a squeeze.
A squeeze signals a period of low and is considered by traders to be a potential sign of future increased and possible trading opportunities.
Conversely, the wider apart the bands move, the more likely the chance of a decrease in and the greater the possibility of exiting a trade.
However, these conditions are not trading signals.
The bands give no indication when the change may take place or which direction price could move.
Now Lets Talk BREAKOUTS from The Bbands!!!Breakouts
Approximately 90% of price action occurs between the two bands.
Any breakout above or below the bands is a major event.
The breakout is not a trading signal.
The mistake most people make is believing that that price hitting or exceeding one of the bands is a signal to buy or sell.
Breakouts provide no clue as to the direction and extent of future price movement.
With all of these indications from BBANDS & or 2 standard deviation points, we can easily turn those into some pretty accurate customized signals, therefore simplifying for you the whole process of using the
THIS IS HOW WE GET THE |U.S.A|v.s|C.C.P| indicator