Trading Bollinger Bands Backwards for Trading Success

Top Dog Trading

Get my free gift for you, for FREE, Top Dog Trading’s “Top 10 Trading Rules for Success.” These are 10 things I changed in my trading to become successful over the last 50 years. They're also the top 10 things that have helped my students shift from move from losing money to making money. Bottom line, no general theories or abstract ideas here. This is the practical stuff that can really work to bring real and dramatic change to your trading results.. It’s a mini-course that contains a pdf Special Report and 3 videos. Get right now by simply going to: http://www.onlinetradingtowin.com/tenrules Go get it for free while the show is still new. This is a follow up from the last episode where we discussed the fact that OB and OS levels on indicators such as stochastics, RSI, and other bounded indicators are NOT actually OB and OS. In fact they’re the exact opposite! This is also true of Bollinger Bands. Yet I see traders using them as a type of OB, OS signals, essentially using them as Support and Resistance Levels. BB are not S/R levels. Most purely they measure volatility. Here are 3 ways to trade Bollinger Bands correctly: Can be used to look for a directional move. If price bars hit the upper BB that’s a bullish signal, not a resistance level. What’s best is when at the same time the LOWER BB line is angling down. In other words, the 2 BBs are moving away from each other. BB squeezes are good. Volatility Cycles. BB breakouts are good. But wait for a momentum shift against the move. Scalp trades Work because so many traders got in, more are not willing to come in now because they’re “late to the party.” Filter: But only trade them in the direction of momentum on the next higher time interval. Ideally I like a 1:3 ratio between the 2 time intervals. I’ll do a separate episode on how to trade multiple time intervals.