{"id":9588,"date":"2022-07-05T11:40:26","date_gmt":"2022-07-05T08:40:26","guid":{"rendered":"http:\/\/thetraderinyou.com\/test\/?p=9588"},"modified":"2022-07-06T17:25:13","modified_gmt":"2022-07-06T14:25:13","slug":"bollinger-bands-scalping-strategy","status":"publish","type":"post","link":"https:\/\/thetraderinyou.com\/test\/bollinger-bands-scalping-strategy\/","title":{"rendered":"Bollinger Bands Scalping Strategy"},"content":{"rendered":"\n
A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security’s price, but which can be adjusted to user preferences.<\/p>\n\n\n\n In the above chart we see the bollinger bands. This indicator was plotted using a 20 period simple moving average which is the red line and 2 standard deviations (positively and negatively) from the 20 period simple moving average which are represented by the blue lines on either side of the 20 period simple moving average.<\/p>\n\n\n\n Use this link to get more information on how Bollinger Bands are calculated: <\/p>\n\n\n\n https:\/\/www.iforex.in\/education-center\/bollinger-bands#:~:text=To%20calculate%20the%20upper%20Bollinger,is%20the%20lower%20Bollinger%20Band.<\/a><\/p>\n\n\n\n So how do you use the Bollinger bands in a scalping trading strategy?<\/p>\n\n\n\n Reversals<\/p>\n\n\n\n When price exits either the upper or lower Bollinger bands it can be seen as a signal for a reversal. This can also signal overbought or oversold conditions in the market. When price moves closer to or exits the upper band then the market is likely overbought and a reversal is likely to occur. When price moves closer to or exits the lower band then the market is likely oversold and a reversal is likely to occur.<\/p>\n\n\n\n A long position entry signal would occur when price exits the lower band of the bollinger bands. You can also use reversal candlesticks as a confirmation of the signal.<\/p>\n\n\n\n In the image above, we see a long position entry signal at the point marked by the green arrow. Price exitis the lower band of the bollinger bands which is followed by a green doji candlestick which acts as a confirmation for our long position entry. A long position opened at that point is profitable as price moves up.<\/p>\n\n\n\n A long position entry signal would occur when price exits the upper band of the bollinger bands. You can also use reversal candlesticks as a confirmation of the signal<\/p>\n\n\n\n In the image above, we see a short position entry signal at the point marked by the red arrow. Price exits the upper band of the Bollinger bands which is followed by a green doji candlestick which acts as a confirmation for our short position entry. A short position opened at that point is profitable as price moves down.<\/p>\n","protected":false},"excerpt":{"rendered":"<\/a><\/figure>\n\n\n\n
Long Position<\/strong><\/h2>\n\n\n\n
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Short Position<\/strong><\/h2>\n\n\n\n
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