💥 Bollinger Bands Indicator — A volatility tool that reveals explosions before they begin!
Regular traders see the explosion… but professionals anticipate it!
👉 This indicator tells you when the strong movement will start 🔥
Welcome to episode nine of:
"Understand indicators like a pro" 🔍
And our topic today: Bollinger Bands — Ride the wave before it hits!
📊 What is the Bollinger Bands indicator?
An indicator based on measuring price volatility consisting of 3 lines:
✅ The middle line = 20-day Simple Moving Average (SMA)
✅ The upper line = SMA + two standard deviations
✅ The lower line = SMA - two standard deviations
The lines expand and contract according to the level of price volatility.
⚠️ What should you watch for?
🔻 Line tightening = low volatility = upcoming explosion
This is called "squeeze" — one of the strongest entry signals!
🔺 Line expansion = high volatility = trend likely ending
🔍 How to use it wisely?
✅ When the lines contract — get ready for a price explosion
✅ Wait for the price to close outside the band with strong volume — this is the entry signal
✅ Use RSI or MACD to confirm the trend
💡 Important Note: In strong trends, the price moves "stuck" to the outer boundary — use it to confirm the trend continuation
🚀 Practical example:
Identify a contraction area in the band
Confirm the direction of the explosion via RSI above 50 or MACD crossover
Enter the trade when breaking the band with volume
Place the stop inside the band and take profits at resistances
📌 Next episode: Fibonacci — the golden levels where whales buy 📐🪙
Follow me to learn how to accurately hunt buying opportunities like whales 🐋
