🔥 Next indicator: Bollinger Bands
Did the price rise sharply suddenly? Or did it crash without warning? 🤔
Professionals know the secret… It's Bollinger Bands 🔥
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📌 What is the Bollinger Bands indicator?
It's a smart tool that measures volatility in the market.
It helps you know when the market is 'very calm' or 'very crazy'! 😵💫
It consists of 3 lines:
• The middle line: Simple Moving Average (SMA)
• The upper and lower lines: Two standard deviations above and below the middle line
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🧭 How to add Bollinger Bands on the Binance app? (Step by step for beginners)
1️⃣ Open the Binance app
2️⃣ Go to 'Markets' and select the desired currency
3️⃣ Click on 'Chart'
4️⃣ Click on 'Indicators'
5️⃣ Type in the search: Bollinger Bands
6️⃣ Activate the indicator and 3 lines will automatically appear on the chart 💡
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🧠 How to use it wisely?
🔹 When the price touches the lower line:
🔁 It may rebound upwards → Buying opportunity (especially if accompanied by support)
🔹 When it touches the upper line:
🔻 It may drop → Selling opportunity or waiting for correction
🔹 When the bands tighten too much:
⚠️ The market is very calm → An explosion is coming whether up or down!
🔹 When the bands suddenly widen:
🚨 Strong momentum entry → Watch the movement and beware of high volatility
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🧱 Simple strategies for beginners:
1️⃣ Explosion strategy (Bollinger Squeeze):
If the range tightens too much, prepare for a big move
2️⃣ Rebound from the edges:
If the price touches the upper limit + reversal candle → Possible correction
If it touches the lower limit + rising candle → Possible rebound
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⚠️ Warning for beginners:
❗ Do not rely on the indicator alone!
❗ It's best to combine it with another indicator like RSI or MACD to confirm the signal
❗ In a strong trend, the price may touch the outer line several times without a correction
The market whispers to you through volatility… But are you listening? 👂🔥
