Bollinger bands technique must be considered as an indicator to have a profitable trading in the market. It is because each of them have the different signal and accuracy for the traders.
Bollinger band itself is one of the most famous options and it was released by someone named John Bollinger. It is identical with the ability to display three different lines or band along the price movement.
It is not only following the price fluctuation, these lines can be also getting smaller and bigger based on the market volatility condition. The flexibility that it has becomes an ideal factor to be used in any kinds of strategies.
That is why; this bollinger bands technique is also recommended for a swing trading. Learn more about this before you use it so that the result will be maximum.
How this bollinger bands technique works for the swing trading
Before going further and talk about this indicator, you should know that it also uses the intraday intensity as an added indicator. Usually, intraday intensity is used as a volume.
However on this case, it will be used more for an oscillator. The overbought for that intraday intensity value is in +1, Besides that The oversold limit is -1. To use this bollinger bands technique in a swing trading, make sure to find the reversal signal first.
In the other words, you have to pay attention the moment when price is touching then upper band and intraday intensity must be in an overbought condition. There is also another formation.
That is when the price is reaching the lower band and the intraday intensity is showing the oversold signal. It is maybe looked complicated, but as time goes by, you will understand this.
The essential reversal candlesticks pattern for this strategy
As a confirmation, the price pattern which signs the reversal must show the reversal formation as well. This situation may make you get the goodness of this indicator with price action.
There are some reversal candlesticks patterns which are important for this bollinger bands technique. What are those things？ Here are the lists.
1.Engulfing
This pattern consists of two candlesticks and showed that the last part engulf the part before. It means that the last candle has a bigger body than before and it decides the price reversal direction too.
2.Inside Bar
This pattern is fully inside the candlestick range before so that the highest and lowest price are not bigger than the open and close price before. This is quite common among the traders.
3.Morning or evening star
This pattern is also important for trading and consists of 3 different candles. The first candlestick has the inline formation like the trend direction before
Meanwhile, the second one is quite small and shows the market certainty. That is why; the form is like a doji or pin bar. The third one will indicate the new trend direction.
4.Piercing
It is a quite popular one where it is related as the bearish patter. Vice versa, piercing line is bullish. Salmamarket forex broker can be a great place to find many supports for piercing.
You may practice this simple technique to support the trading activity. However, dont make it as the only thing to get the profit because other factors are also essentials.
Make sure to join the best forex broker because it has so many great features and facilities for the traders. Salmamarket is a good choice since it combines the latest technology of MetaTrader with their facilities.
The deposit and withdrawal systems are also so easy. Join now for free and get the best supports from professionals. You can practice the bollinger bands technique better there.