Candlestick charts have the advantage of being able to be utilized in conjunction with a variety of technical indicators. In this post, I’ll show you how to trade on the Pocket Option platform using Bollinger Bands, as well as support and resistance levels. Trend reversals are traded using this trading approach. Let’s get this party started.
When to enter a buy trade when using bollinger bands
I’ll only enter a trade when the trend reverses when employing the Bollinger Bands alongside Support and Resistance. The following guidelines will be followed. Place a buy trade: In a downtrend, when the price goes below the lower band and breaks through the support level.
A long bearish candle that breaks the support indicates this. A long bullish candle follows it. When the price breaks through the bearish candle’s support, I’ll instantly start a one-minute buy trade.
When to enter a sell trade when using bollinger bands
When the price rises above the upper band on an uptrend and breaks out of resistance, place a sell order. A long bullish candle followed by a long bearish candle indicates this. I’ll enter a 1-minute sell trade as soon as the price breaks through the support and rises over the upper band.
How to set up bollinger bands
you should focus more on candlesticks forming
You’ll only enter a buy or sell trade if the price breaks out above or below a support or resistance level, according to our trade entry rules. Furthermore, the price should break above or below the top and lower bands, respectively.
As a result, it’s critical that you investigate where this occurs. Enter your trade based on the color of the following distinct colored candle as it develops. Your deals should last no more than one minute.
Be patient
Make sure you follow support and resistance lines, don’t enter a trade anyhow because a candlestick has broke the out the band.
When does the bollinger bands work best?
Bollinger Bands are used in conjunction with support and resistance to identify potential trade entries when trend reversals occur. This makes it an effective trading technique, even when markets are influenced by news. All you have to do now is look at the candle designs.
In certain cases, trend reversal does not happen right away, or the reversal is too minor to result in a profitable trade. Do you recall my first trade? As a result, identifying the ideal trade entry points involves some patience while reviewing price charts.
Disadvantages of trading using bollinger bands
There will be a limited number of trade entry points available to you.
During a trading session, you may obtain multiple favorable entry points. However, in most cases, your entrance points will be few and far between. Many of these, on the other hand, will provide accurate signals, resulting in profitable trades.
Advantages of trading using bollinger bands
One feature that distinguishes this technique is its high chance of winning transactions. I propose that you practice with your Pocket Option OR iQ OPTION or metatrader. This is because you’re essentially employing two indicators in addition to candles. Furthermore, you should only enter a trading position if certain criteria are met. Before initiating a single trade, all you have to do is examine the price charts, draw your support and resistance levels, and wait for prices to cross these lines.
I am Keith Rainz a content creator in Zambia. I specialize in forex and crypto trading. You can WhatsApp me via +260977770202.
