$ADA 4-hour move broke below the lower Bollinger Band (current price: 0.1862, now back above the lower band). Let’s talk about a common misconception:
Many people tend to treat a break below the lower band as an oversold signal. But when the market turns after the bands have finished contracting, it’s not uncommon for the price to track along the lower band. In that situation, the lower band isn’t a floor. What really matters is whether the price bounces back into the band and moves above the middle band at 0.1905.
Don’t go all in or out based on a single signal; scaling in and out is more measured.
Just chatting—this isn’t advice.
Many people tend to treat a break below the lower band as an oversold signal. But when the market turns after the bands have finished contracting, it’s not uncommon for the price to track along the lower band. In that situation, the lower band isn’t a floor. What really matters is whether the price bounces back into the band and moves above the middle band at 0.1905.
Don’t go all in or out based on a single signal; scaling in and out is more measured.
Just chatting—this isn’t advice.
