Saturday, 12 September 2015

Knowing Bollinger Bands

It's the second part from bollingerbands. If you want to see the first about how to insert click here.

Well now.. It's about how I knowing bollinger bands.

Check this picture




knowing bollinger bands















The red arrow is upper bands then the green arrow is lower bands, the last white line in 2 bollingerbands is center bands.

The simple ways to understand it is.

1. If the candlestick break the upper band - its overbought - candlestick will move down later.
2. If the candlestick break the lower bands - it's oversold - candlestick wil move up later.

To easy understanding check this picture, it's about oversold

oversold bollinger bands










When the candle breaks a lower bands it's oversold. So next the candlestick will move up.

See you next post about bollinger bands strategy.

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