Head Up Simple Bollinger Bands Trading Strategy

Bollinger bands are divided into upper rail, middle rail and lower rail, and are commonly used technical indicators for judging short- and medium-term trends.

First, observe whether the K-line runs between the upper rail and the middle rail, or between the middle rail and the lower rail.

Second, the middle rail represents the trend direction, if the middle railRaise one's headUpward, it indicates an upward trend, and a sound investor can go long on the dip.

Third, with the MACD trend indicator, if the two directions are consistent, it is better to confirm the stability of the trend; if the direction is opposite, it may indicate that the market has entered a range of fluctuations, and the operational risk has increased relatively.

Bollinger Band parameters usually use default values, and MACD also uses default settings. The 4-hour period can be used to determine the trend and determine the entry point.

After confirming the trend and point, combine it with the 30-minute chart. Once the point is reached and the corresponding pattern appears, you can enter the market.

As long as the trend does not change, profitable orders can continue to be held, or even increased when they hit the middle track.

The target is usually set at $5 to $7, with a stop loss of $3 to $5.