The Bollinger Bands' upper and lower bands suddenly broke below the middle band (at the circled point) after contracting to an extreme level, and when rebounding near the middle band, it faced resistance. If it breaks below the most recent low point again during the next decline, we can use this as a basis to enter a short position. In actual trading, we must go with the trend. When the price breaks below the middle band of the Bollinger Bands and starts to decline, as long as the price rebounds to the vicinity of the middle band and faces resistance, we can enter a short position. When the market is operating between the middle band and the lower band of the Bollinger Bands, do not be clever and try to catch the bottom. If you want to judge potential bottoms, use the Bollinger Bands and MACD techniques in conjunction to determine the market bottom, but always remember that any technique is relative.
