10 Bollinger Bands Trading Strategies For Every Trader

Bollinger Bands Trading Strategies For Every Trader. Woman analyzing double bottom chart pattern in Bollinger bands.

(9) Buying Or Selling When Upper Bollinger Band Pointing Nicely Up Or Down

It is one of the most surprising Bollinger bands trading strategies for every trader. Bollinger Bands® are non-directional indicators in nature.

But, when they are pointing nicely up then it could be an indication of a possible uptrend.

Bollinger Bands pointing nicely up

Bollinger Bands pointing nicely up

Similarly, when they are pointing down then it could be an indication of a possible downtrend.

Bollinger Bands pointing down

Bollinger Bands pointing down

However, when there is no trend or consolidation is taking place then these bands are likely to trade flat. A flat trend can be observed in squeeze pattern.

Some traders can utilize this strategy to make their positions in a script, index, or even bonds. They buy when upper band is pointing up while sell as soon as they start pointing down.

However, you can also utilize additional indicators like MACD & RSI indicators for better decisions. If MACD is showing positive divergence then it could be a buy signal. However, if MACD is showing negative divergence then it could be a sell signal.

On the other hands, when RSI is below 30, it could be a buy signal due to oversold positions. However, when RSI is above 70, it could be a sell signal due to overbought positions.

[Read Also: 10 Shocking Trading Activities Of Punters To Fool Investors]

Image Source: Rockwelltrading

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