Indicator Notes｜$MAGMA ｜4-hour Bollinger Bands｜Upward breakout after 2 days of narrowing
First, the definition: A squeeze is relative. You need to compare the bandwidth with that of the same coin over the past few months; comparing bandwidths across different coins has limited value.
Next, how to read it: In a strong market, the price often hugs one side of the band. Going against the trend every time it touches the band can easily lead to losses.
Calculating position size based on where you place your stop-loss is much more reliable than guessing.
First, the definition: A squeeze is relative. You need to compare the bandwidth with that of the same coin over the past few months; comparing bandwidths across different coins has limited value.
Next, how to read it: In a strong market, the price often hugs one side of the band. Going against the trend every time it touches the band can easily lead to losses.
Calculating position size based on where you place your stop-loss is much more reliable than guessing.