$EVAA 4 hours after the Bollinger Bands contracted, the price broke above the upper band (1.1132), about 2 days later. The bandwidth was 5.63% at the time of the contraction.
Let’s use this data to talk about Bollinger Bands.
The three lines of the Bollinger Bands change in real time with each new candlestick. A breakout you see before a candlestick closes may have moved back inside the bands by the time it closes.
Rather than predicting which direction the price will move after the bands contract, many people prefer to wait for the price to show its direction, then make a decision with risk management in mind.
Understanding this indicator is about avoiding being spooked by the numbers, not using it to predict price movements accurately.
Just a market observation. Please make your own trading decisions.
Let’s use this data to talk about Bollinger Bands.
The three lines of the Bollinger Bands change in real time with each new candlestick. A breakout you see before a candlestick closes may have moved back inside the bands by the time it closes.
Rather than predicting which direction the price will move after the bands contract, many people prefer to wait for the price to show its direction, then make a decision with risk management in mind.
Understanding this indicator is about avoiding being spooked by the numbers, not using it to predict price movements accurately.
Just a market observation. Please make your own trading decisions.