I’ve fooled around plenty with Bollinger Bands, but they aren’t part of my regular trading routine. Nonetheless, I often poke my nose around what various things are up to, and notice a nice pattern on EUR/GBP.
The trend is up, and the bands have been stair-stepping up. It’s a great pattern, with the bands being at a support/resistance area (I drew my own lines that I felt were a bit more accurate). And it’s a pattern that seems soon due for another step up.
The last 3 times the break in resistance was signaled by a close above the band. There’s a lot of BBands traders who love this kind of stuff. Personally I think the best method would be to use that close above the band accompanied with a buy signal in whatever your method is.
Let’s see where this goes. We’ll try a little experiment with the ol’ bands and see what happens after the next close above the top band. And remember – our saving grace as traders is commitment to a method, or system. It’s understandable if you are still learning what the indicators do. But that should be a short road. The longer road that gets you somewhere is using one of them a lot. You start out not that great with it, but get better and better and that’s where profits lie.
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