Another thing I observed (and often I use in my trading) is that when Bollinger Bands are thin, price is unlikely to go just in "the right" direction whatever it will be.
The most often, before it goes up or down starting smaller or bigger trending move, it will go a little bit in ANY direction, and then pull back to the other side of a band or at least near to the MA.
Knowing this, when price is near MA, and BB is thin I put set of hedged positions long and short only with Take profits set on.
This is very easy to gain lots of small profits in ranging markets, or begining of tranding market.
Let me show an example on the image:
By the arrows I show where I put hedged positions. I do this because simply I do not know where the price will go first. Even if I know that after some time it will go let's say up, often it likes to go lower and then pull back.
If anybody will be interested in this work I'll be posting more.
If anybody would like to talk, please ask questions, however I cannot yet answer by shouting on Your profiles, as I am still a junior member.
Cheers !
The most often, before it goes up or down starting smaller or bigger trending move, it will go a little bit in ANY direction, and then pull back to the other side of a band or at least near to the MA.
Knowing this, when price is near MA, and BB is thin I put set of hedged positions long and short only with Take profits set on.
This is very easy to gain lots of small profits in ranging markets, or begining of tranding market.
Let me show an example on the image:
Attached Image
By the arrows I show where I put hedged positions. I do this because simply I do not know where the price will go first. Even if I know that after some time it will go let's say up, often it likes to go lower and then pull back.
If anybody will be interested in this work I'll be posting more.
If anybody would like to talk, please ask questions, however I cannot yet answer by shouting on Your profiles, as I am still a junior member.
Cheers !
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