Bollinger Bands: Buy & Sell Signals

🔍 Want to trade smarter? Learn how to use Bollinger Bands to spot potential reversals and capitalize on market volatility!

🚀 What You’ll Learn:

✅ Buy Signal – When to enter a trade.
✅ Sell Signal – When to exit a trade.
✅ Understanding Bollinger Bands – How they help analyze market trends.

1️⃣ Buy Signal: When to Enter a Trade

📉 Price Touches or Breaks Below the Lower Band = Buy
✔️ When the price touches or moves below the lower Bollinger Band, it may indicate the asset is oversold.
✔️ This suggests a potential reversal to the upside, making it a good time to buy.

2️⃣ Sell Signal: When to Exit a Trade

📈 Price Touches or Breaks Above the Upper Band = Sell
❌ When the price touches or moves above the upper Bollinger Band, it may indicate the asset is overbought.
❌ This suggests a potential reversal to the downside, making it a good time to sell.

3️⃣ What Are Bollinger Bands?

🔹 Bollinger Bands consist of three lines:
✔️ Middle Band (SMA 20): A simple moving average (SMA) that represents the trend.
✔️ Upper Band (+2 Standard Deviations): Measures overbought conditions.
✔️ Lower Band (-2 Standard Deviations): Measures oversold conditions.

📌 How They Work:
➡️ When bands expand, volatility is high.
➡️ When bands contract, volatility is low (this may signal an upcoming breakout).

📊 Start Trading with Bollinger Bands Today!

✅ Bollinger Bands help identify trend reversals and market volatility.
✅ Use them on the platform to improve your trade entries and exits.
✅ Combine them with RSI or MACD for stronger confirmations.