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Bollinger bands head fake

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bollinger bands head fake

Basically the opposite of "Playing the Bands" and bands on reversion to the mean is playing Bollinger Band head. Breakouts occur after bands period of consolidation, bands price closes outside of the Bollinger Bands. Other indicators such head support and resistance lines see: A trader might buy bollinger price breaks above the head Bollinger Band after a period of price consolidation. Other confirming indicators might likely be used by the trader, such looking for resistance to be broken; this is fake in the chart above of Wal-Mart stock. Similarly, a trader might sell when price breaks below the lower Bollinger Band. Bollinger trader might use other confirming indicators as well, such as a support line being broken; this is shown in the example above fake Wal-Mart stock breaking below support. Bollinger Bands can also be used fake determine the direction and bollinger strength of the trend. The reverse would be true during a downtrend, where prices would be in the lower half of the Bollinger Band and the period moving average would act as downward resistance. Bollinger Bands adapt to volatility and thus are useful to options traders, specifically volatility traders. The bollinger page describes how traders might use Bollinger Bands to make volatility-based options trades. The information above is for informational and entertainment purposes head and does not constitute trading advice or a solicitation to buy bands sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. Trading is inherently risky. Fake Technical Analysis Candlestick Charts Classic Charts Options. Trading Disclaimer Privacy Policy Contact Us.

3 thoughts on “Bollinger bands head fake”

  1. AHetman says:

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  3. Alexpromo says:

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