โก๏ธ Episode 83: Bollinger Bands Indicator โ volatility reveals upcoming explosions! ๐ฃ๐
Do you want to know when the market is ready for a price explosion?
The Bollinger Bands indicator gives you a clear glimpse of the 'calm before the storm'!
๐ What is Bollinger Bands?
It consists of 3 lines:
๐ The middle line = Simple Moving Average (usually 20 periods)
๐ผ Upper line = Average + 2 Standard Deviations
๐ฝ Lower line = Average - 2 Standard Deviations
๐ก How to interpret it?
๐ธ If the bands converge (narrow) โ decrease in volatility โ potential price explosion soon ๐ฅ
๐ธ If the bands expand โ strong price movement has begun
๐ธ If the price touches the upper line โ potential resistance area
๐ธ If the price touches the lower line โ potential support area
๐ง Best uses:
๐น Detect low volatility โ readiness for a price explosion
๐น Monitor reversal areas
๐น Combine with Price Action or MACD to enhance signals
โ ๏ธ But be careful:
โ Not to be used alone
โ The price may stay at the edges for a long time โ don't rush
๐ข Is it available on Binance?
Sure โ
Search for 'Bollinger Bands' in the indicators list
๐ ๏ธ How to add it:
Open the chart
Click [๐ง Indicators]
Type 'Bollinger Bands'
Add it โ and the default settings are excellent (20, 2)
๐ Tip for professionals:
If you see the bands narrow and the price breaks one of the lines with high trading volume โ very strong price explosion potential
Combine it with RSI or confirmation candles for filtering ๐ฏ
๐ The Bollinger Bands indicator lets you 'see the calm before the storm' โ and prepares you to strike at the right time
๐ฅ Next episode: A classic indicator that gives smart signals for reversals from bottoms and tops โ stay tuned
