The K-line is cracking jokes again: $UNI 's daily Bollinger Bands narrowed for about 17 days before breaking below the lower band (6.4273).
Narrowing Bollinger Bands are like holding your breath—you never know which way you'll burst out when you exhale.
On a more serious note, Bollinger Bands were developed by John Bollinger and consist of three lines: the middle band is a 20-period moving average, the upper band is the middle band plus two standard deviations, and the lower band is the middle band minus two standard deviations.
Calculating your position size based on where you place your stop-loss is much more reliable than placing trades by gut feel.
Narrowing Bollinger Bands are like holding your breath—you never know which way you'll burst out when you exhale.
On a more serious note, Bollinger Bands were developed by John Bollinger and consist of three lines: the middle band is a 20-period moving average, the upper band is the middle band plus two standard deviations, and the lower band is the middle band minus two standard deviations.
Calculating your position size based on where you place your stop-loss is much more reliable than placing trades by gut feel.