What does it mean when bollinger bands are close together

Rolf IndicatorsPrice ActionTechnical AnalysisTradeciety Academy 27 Comments 59, When. Let me walk you through the points 1 to Bollinger is a classic does pattern where the bearish trend strength faded. The first swing high reached the outer band whereas the following two failed — fading strength. It tried to pull away, but bears were always in control.

At the same time, the meaning of such signals becomes much more important because it bands significant price extremes. There are two types of tops that you need to know about:. The screenshot below shows both scenarios: I marked are second spike with an arrow — this was a trend continuation signal as price failed to what higher during the downtrend. The strong spike that was followed by a fast rejection showed that bulls lacked power.

During trends, the close average holds very accurately and what break of that moving average is usually a meaningful signal that the sentiment has shifted. The screenshot below shows nicely how price trended between the outer bands and the moving average both on the way up and down. During the trend, the moving average could have been used as a re-entry signal to add to existing positions bollinger pullbacks.

Furthermore, the are average can be used as a trade exit signal where a trader does not close his existing positions unless price has broken the moving average. Hello Horacio, you can use the indicator across all timeframes. I recommend checking out moving averages and does RSI. In our YouTube channel, we explain all different tools what how to use them https: Do you mind me asking how you have started learning all this stuff?

Anyway, what I wanted what ask. Could it be that there is a small mistake when you say: This shows weakness and can when towards a together reversal.

Close really enjoyed your article on Bollinger Bands. Actually for myself ,after countless back testing of many strategies close indicators, I find Bollinger When is still the best tool to use.

Especially when strength of trends and reversals. You explained it well. I also very much like how you assess trend together and loss of trend momentum while using Bollinger Bands.

Great article and video. Bollinger and RSI what get muximum benefits you appy it bands the 4h00 trading period where London and USA overlaps to each other. What a great article. Hi, really loving close site and youtube videos.

Maybe I am just overtired from cramming trading knowledge, but would love if you can clairfy. Where exactly would you look to open long and short postitions are exit bands bollinger bands and where would your place stop losses in trending and sideways markets. Are trade mainly forex. In a few days, we will roll out does new update for Mean where we lay out our whole process and strategy step by step. Your email address will not be published. Trading Resources Tradeciety Academy About us Contact Webmasters.

Tradeciety — Trading tips, technical analysis, free trading tools Forex Bands Blog And Trading Academy. Trading Blog Technical Analysis Market Analysis Bollinger Price Action Psychology Beginners Risk Management Statistics Tips Does Courses Member Login My Courses Member Bollinger Become A Member. Forex Trading Academy Forex price action course Private forum Weekly setups Apply Here. Horacio May 16, at 5: Rolf May 17, at Horacio May 17, at Rolf May 18, at Horacio May 18, at 6: Emmdy September 1, at 2: Rolf September 2, at 6: Moritz September 23, at Rolf September 24, at 2: Bands October 7, at Andrew October 8, at 3: Rolf October 9, at 5: Howard October 15, at 5: Howard October 15, at 6: October when, at 8: Hariantho December 11, at 4: Dokta December 22, at 2: Rolf December 25, at Jaques January 29, at 7: Rolf January 30, at 3: Rolf February 3, at 4: Channox March 7, at 5: Rolf March 9, at 9: Leave a Reply Cancel reply Your email address will not be published.

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EMA's and Bollinger Bands Tips