Don't wait until you're completely out! A squeezed Bollinger Band = storm warning, this trick lets you position yourself ahead of the bull market
Brothers, what's the most frustrating thing about sideways markets? You just bought and it drops, you just sold and it rises, it's like being under surveillance! But the Bollinger Band is specifically designed to deal with this "manipulative market"; it acts like a rubber band, the tighter it squeezes, the harder it rebounds!
Three major tricks of Bollinger Bands, take off immediately after reading
Narrowing = the calm before the storm
When the upper, middle, and lower bands squeeze into a single line, it indicates that both bulls and bears are exhausted and are about to launch a major move! At this time, don't touch leverage, and avoid short-term trades; even transaction fees can make you cry from losses. Wait for it to open up and then act, the larger the breakout, the more intense the subsequent market!
Case study: Bitcoin was in a sideways market for a month in 2023, and the Bollinger Bands squeezed into a "thin line," then skyrocketed by 30%; those who missed the boat are still kicking themselves!
Direction of opening = action signal
High-level opening followed by contraction: the coin price has tripled, the Bollinger Bands open to the maximum and suddenly narrow - run quickly! This is a signal for the main force to unload, and it would be strange if it doesn’t drop afterward! Low-level opening expansion: the coin price has dropped by 50%, the Bollinger Bands suddenly open, the middle band turns up - buy with your eyes closed! At this time, the win rate is ridiculously high; I've personally tested it three times, catching doubles twice!
The "Achilles' heel" of Bollinger Bands
The indicator reacts slowly, don’t expect it to predict reversals! It only tells you whether the trend can continue; the real tops and bottoms need to be confirmed with other tools. For example, MACD divergence + Bollinger Band opening is the perfect combination!
Finally, let’s speak some hard truths
Bollinger Bands are not omnipotent, but not using them in a sideways market is like betting with your eyes closed in a casino! I've seen too many people get washed out before a trend change because they didn't understand the squeezing signal, later crying out, "If only I had seen this article earlier."
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