Join Olymp Trade –
Learn more about Bollinger Bands –
Bollinger bands chart was developed by John Bollinger and it is mostly used to measure market volatility.
i.e – to know when the market is quite (less volatile) or when the market is loud (volatile).
to know when the market is less volatile, you will see Bollinger bands contracting.
Conversely, Bollinger bands will expand when a market is volatile.
It is just like an iron metal; hard to bend when cold and easy to bend when hot.
For this Bollinger strategy, we will use the same iron concept
We will strike when the market is hot and expanding and take a break from the market when it is cold and contracting.
All factors constant, we should make money with trading with Bollinger bands
Before we go deep into discussing Bollinger strategies,
Let’s take a break to learn how to set it up on Olymp trade
How to set up Bollinger bands in olymp trade
1. login to your Olymp trade account
2. locate the indicators tool
3. Click on Bollinger bands to activate it on your charts.
4. Now scale down your charts to 15 seconds and set trade duration to 2 minutes.
5. Before you start trading click on the asset tab to select the assets you wish to trade.
6. to ensure maximum profitability, we will choose assets that have 80% plus profitability
7. click on the star shown alongside each asset to activate them
Now that your chart is ready for trading
Let’s identify volatile assets and trade on them using the breakout method on Bollinger bands.
Remember, Bollinger bands have two outer bands and a moving average but for this strategy we will only focus on the breakouts on the two outer bands.
Immediately after the breakout candle finishes forming, open your trade.
keep checking the assets that you selected above and placing trades when there is an opportunity
remember, this strategy only works for scalpers on 15 seconds time frame and a 2 minutes trading duration
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