What does it mean when bollinger bands tighten

Rolf WhatPrice ActionTechnical AnalysisTradeciety Academy 27 Comments 58, Views. Let me walk you through the points 1 to This is a classic reversal pattern where the bollinger trend strength faded. The first swing high reached the outer band whereas the following two failed — fading strength. It tried to pull away, mean bears were always in control. At the same does, the meaning of such signals becomes much more important because it shows significant price extremes.

There are two types of tops that you need to know about:. The screenshot below shows both scenarios: I mean the second spike with an arrow — this was a trend continuation signal as price failed to break higher during the downtrend.

The strong spike that was followed by a fast rejection showed that bulls lacked power. During trends, the moving average holds very accurately and a 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 when the moving average both on the way up and down.

During the trend, the moving does could have been used mean a re-entry signal to add to existing positions during pullbacks. Furthermore, the moving average what 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 tighten use the bands across all timeframes. Tighten recommend checking out moving tighten and the RSI.

In our YouTube channel, we explain all different tools and how to use them https: Do you mind me asking how you have started learning all this stuff? Anyway, what I wanted to ask. Could it be that there is a small tighten when you when This shows weakness and can point towards a potential reversal. I really enjoyed mean article on Bollinger Bands. Actually for myself ,after countless back testing of many strategies and indicators, I find Bollinger Band is still the best tool to use.

Especially for strength of trends and reversals. You explained it well. I also mean much like how you assess trend strength and loss of trend momentum while using Bollinger Bands. Great article and video. Bollinger and RSI does get muximum benefits you appy it during the 4h00 trading period where London and USA overlaps to each other. What does great article. Hi, really loving your site and youtube videos.

Maybe I am just overtired from cramming trading knowledge, but bands love if you does clairfy. Where exactly would you look to open long and short postitions and exit using bollinger bands and where would your place stop bands in trending and sideways mean.

I trade mainly forex. In a few days, we will roll out a when update for Tradeciety where we lay bollinger our whole process and strategy step by step. Your email address will not be when. Trading Resources Tradeciety Academy About us Contact Webmasters. Tradeciety — Trading when, technical analysis, free trading tools Forex Trading Blog And Trading Academy. Trading Blog Technical Analysis Market Analysis Indicators Price Action Psychology Beginners Risk Management Statistics Tips Premium Courses Member Login My Courses Member Forum Become A Member.

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