10 Profitable Tips For Day Trading With Bollinger Bands

Profitable Tips For Day Trading With Bollinger Bands. Day trader standing in front of technical charts with Bollinger bands.

(10) Bollinger Bounces Occur More Quickly Near Outer Bands

It is one of the most surprising tips for day trading with Bollinger bands. Bollinger bounce is the returning back of price towards middle band after reaching outer bands (either upper band or lower band).

If the price is reached the top of the Bollinger band then it is likely to revert back to middle band due to resistance levels on higher side.

Similarly, if the price is reached the downside of the lower band then it is likely to revert back to middle band due to support levels on lower side.

This bouncing continues until a strong breakout happens on either side. But, this bouncing of prices between two bands occurs more quickly near outer bands.

This provides a good trading opportunity to day traders to generate profits quickly. Sometimes, this trading pattern may extend into strong trend further.

Therefore, day traders are required to keep stop loss order at the right price to prevent unexpected losses.

Image Source

Recommended Posts

More From GetUpWise

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


*


More in Stocks & Mutual Funds
Basic Limitations Of Bollinger Bands In Technical Analysis.
15 Basic Limitations Of Bollinger Bands In Technical Analysis

Bollinger Bands® is not a perfect indicator in all scenarios. These basic limitations of Bollinger Bands in technical analysis must...

Close