Just noticed: $Lobster’s 4-hour Bollinger Bands narrowed, then broke below the lower band (0.03604) about 4 days later.
People often ask how to read the Bollinger Bands. This is how I understand them.
The middle band is essentially the 20-period moving average. Many people use it as a dividing line for short-term strength: prices above it are considered strong, and prices below it weak.
The first move outside the bands after they contract may also be a false breakout: the price initially surges in one direction, then reverses and makes a genuine move in the opposite direction.
Extreme readings often signal greater volatility. At times like these, it’s better to reduce your position rather than add to it.
#龙虾
Just my personal take; I may not be right, so please treat this with caution.
People often ask how to read the Bollinger Bands. This is how I understand them.
The middle band is essentially the 20-period moving average. Many people use it as a dividing line for short-term strength: prices above it are considered strong, and prices below it weak.
The first move outside the bands after they contract may also be a false breakout: the price initially surges in one direction, then reverses and makes a genuine move in the opposite direction.
Extreme readings often signal greater volatility. At times like these, it’s better to reduce your position rather than add to it.
#龙虾
Just my personal take; I may not be right, so please treat this with caution.