$AGT 4The 4-hour Bollinger Bands had been squeezing for 4 days before breaking upward.
Don’t get carried away—understand the Bollinger Bands before you make a move.
The commonly used Bollinger Band settings are (20, 2): 20 is the number of candlesticks used to calculate the middle band and standard deviation; 2 is the number of standard deviations between the upper and lower bands and the middle band.
Many people like to look at volume alongside them: a breakout on increased volume after the bands contract is more convincing than one on declining volume.
Don’t chase a trade during the sharpest move. Wait for the price action to play out before deciding.
Don’t get carried away—understand the Bollinger Bands before you make a move.
The commonly used Bollinger Band settings are (20, 2): 20 is the number of candlesticks used to calculate the middle band and standard deviation; 2 is the number of standard deviations between the upper and lower bands and the middle band.
Many people like to look at volume alongside them: a breakout on increased volume after the bands contract is more convincing than one on declining volume.
Don’t chase a trade during the sharpest move. Wait for the price action to play out before deciding.
