Rubber band trade strategy

rubber band trade strategy

much lower. This is just another example of why it's important to pair Bollinger Bands with other indicators and not use it as a standalone tool. Now, please don't take this as an example where I am unable to make a decision. You must honestly ask yourself will you have the discipline to make split-second decisions to time this trade, just right? For this example, let's review the rally from the low of 5,980 on 2/6/2018 to a swing high of 11,785 on 2/20/2018. The one thing the bands manages to do as promised is contain the price action, even on something as wild as bitcoin. Share your opinion, can help everyone to understand the forex strategy.

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After all, we are trying to trade against the trend. #4 Strategy - Bollinger Band Squeeze Another trading strategy is to gauge the initiation of an upcoming squeeze. Regarding identifying when the trend is losing steam, failure of the stock to continue to accelerate outside of the bands indicates a weakening in the strength of the stock. Volatility Breakout In the above example, the volatility of the E-Mini had two breakouts prior to price peaking. However, from my experience, the guys that take money out of the market binary option millionaires when it presents itself, are the ones sitting with a big pile of cash at the end of the day.