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Bollinger bands Long Term strategy that you need to know

Have your ever seen a market bounce off a certain level a number of times and then one day break through that level completely?
Chances are, if you watch the market with any kind of regularity, the above scenario will not be unfamiliar to you.
The movement of a price higher or lower is the result of the battle between bears and bulls. However, not all price levels are equal. Certain levels play a key part in the war of opinion over price.

Here's why:
when the market fails to break through a certain level, it creates an expectation in the minds of certain market participants.
These traders expect the same behaviour to repeat in the future and they trade accordingly.
This is why the price so often bounces off or near the same level more than once There's more, though. Others may be enticed to trade if they see prices start to break through one of these levels.
In other words, when the market draws near to these levels, greater numbers may be drawn into trading.
These levels become like battlelines drawn in the sand, of interest to bears and bulls alike.
These are what we usually call levels of support and resistance.
A variety of indicators attempt to map out where these levels lie.
Bollinger bands are just one example of such an indicator.
In my experience, they are more effective than most at doing this job.
So what is a Bollinger band? And how to use it in MetaTrader?
Bollinger bands use a statistical measure known as the standard deviation to establish where a band of likely support or resistance might lie.
This is a specific utilisation of a broader concept known as a volatility channel.
A volatility channel plots lines above and below a central measure of price.
These lines, also known as envelopes or bands, widen or contract according to how volatile or or non-volatile the market is.

Bollinger bands explained
Bollinger bands are constructed by adding and subtracting a multiple of the standard deviation from a moving average.
It is a statistical measure of the dispersion of values in a data set.
The more scattered the values, the larger the standard deviation.
The more narrow the range of values in the set, the lower the standard deviation.
The lines on the chart are plotted according to the Bollinger bands formula:
the middle line is an n-period simple moving average, with 20 being a commonly the upper band is standard deviations above the middle line, with 2 being a commonly
the lower band is standard deviations below the middle line. There are a number of different types of Bollinger bands trading strategy.

Interpreting Bollinger bands
The most basic Bollinger bands interpretation is that the channels represent a measure of highness and lowness, for want of better terms. Let's sum up three key points about Bollinger bands: the upper band shows a level that is statistically high or expensive the lower band shows a level that is statistically low or cheap the Bollinger bandwidth correlates to the volatility of the market. This is because the standard deviation increases as price ranges widen and decreases in narrow trading ranges.

Bollinger band breakout complete rules & explanation Add Bollinger Band Indicator on your chart with default setting and you have to know about it see Pic-01

Buy Trade Rules
Time Frame D1 when Candle close above of upper Band then 2nd Day put pending order buy stop 20 pip above of previous day candle close
see Pic-02-03-04

Stop Loss
20 pip below the middle band
Take Profit
Minumum Take profit is 200 pip and better to use 1:3 Risk Rewrd if your average stop loss is 200 Pip Use Take Profit 600 Pip

Sell Trade Rules
Time Frame D1 when Candle below of Lower Band then 2nd Day put pending order Sell Stop 20 pip below of previous day candle close

Stop Loss
20 pip above the middle band
Take Profit
Minumum Take profit is 200 pip and better to use 1:3 Risk Rewrd if your average stop loss is 200 Pip Use Take Profit 600 Pip
Sell Trade Time Frame D1 when Candle below of Lower Band then 2nd Day put pending order Sell Stop 20 pip below of previous day candle close STOP Loss 20 pip above the middle band Take Profit Minumum Take profit is 200 pip and better to use 1:3 Risk Rewrd if your average stop loss is 200 Pip Use Take Profit 600 Pip
First Try Its On DEMO when you see its perfect then trade on Real always take risk 02% Maxium of your Total Investment

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