Bollinger bands are regarded as a tool for technical analysis, and are a form of trading envelope or band. These make use of a statistical measure, which is regarded as the regular deviation, to set up the place where there can be resistance levels. It is a particular use of a broader concept, regarded as a volatility channel. Lines are plotted below and above a central price measure by a volatility channel plots. Such types of lines are also referred to as bands or envelopes, and contract or widen as per the volatility of a market. A compact indicator system, the Triple Bollinger Bands offers you 3 bands to display 3 Bollinger Bands indicator simultaneously. When it comes to triple bollinger bands strategy, here are a few to use.
Lows and highs must be adjusted
It is recommended that you adjust the lows and highs, as per the stock, given that this makes it more convenient to follow. In any case, you can already get a lot of convenience with triple bollinger bands, given that you can individually set the deviation for every band, to match your ease and personal requirements.
Use the long position
As in case of Bollinger bands strategy, if the prior close is found to break above the upper indicator band, the long position needs to be used and vice versa.
Care for the Bollinger squeeze
When a channel of constrained volatility is followed, it is important to take care of the Bollinger squeeze here as well. Like in Bollinger band, every strategy has to stay the same – only in a more squeezed way.
It is found that Triple Bollinger bands are getting more and more popular every day. This makes it possible to be set up on live accounts as well as on a limitless demo. This is highly convenient, given that you do not have to separately check each of the 3 bands. A cursory glance at the single system can be enough to help you find all the information. This consumes less time and is easily usable, which makes it ideal for beginners out there.
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