$FIL 4 hours broke below the lower Bollinger Band. Here’s a common misconception:
Many people treat a touch of the lower band as a signal to buy the dip. But early in a breakdown after the bands have finished narrowing, it’s quite common for the price to keep tracking along the lower band. At that point, the lower band isn’t a bottom. What matters more is whether the price rebounds back inside the bands and moves above the middle band at 0.9071.
Indicators describe the past; price moves into the future. Don’t mistake them for predictions.
Many people treat a touch of the lower band as a signal to buy the dip. But early in a breakdown after the bands have finished narrowing, it’s quite common for the price to keep tracking along the lower band. At that point, the lower band isn’t a bottom. What matters more is whether the price rebounds back inside the bands and moves above the middle band at 0.9071.
Indicators describe the past; price moves into the future. Don’t mistake them for predictions.
