Bollinger Bands, a widely used resource, acquire overwhelming power when combined with other simple but effective indicators, accessible to everyone. This simple strategy that I am sharing with you today will multiply your chances of success in each operation.

Bollinger Bands are a technical indicator that is made up of three lines, which provide you with information about the volatility and trend of the market, allowing you to identify possible entry and exit points.

A suitable time frame for Day trading would be short time frames, such as 1, 5 or 15 minute charts, to take advantage of intraday market fluctuations.

Entries: When the price approaches the upper or lower band, this indicates possible overbought or oversold. Add an RSI and wait for both the bands and the RSI to indicate such conditions. Look for additional confirmation before opening a position in the opposite direction.

Exits: Check that the price is approaching the opposite band after a successful trade, this may indicate a possible trend reversal. Close when the price touches or crosses the opposite band and a reversal signal is confirmed.

Additionally, consider:

1. Reversal candlestick patterns: Reversal candlestick patterns are a key signal to identify possible changes in price direction, such as the hammer, the hanging man, the shooting star and the doji. They indicate a possible bullish reversal when they appear near the lower band of the Bollinger Bands and when the RSI is at oversold levels.

2. Bullish engulfing pattern: The bullish engulfing pattern may provide additional confirmation. It occurs when a bullish candle completely "engulfs" the previous bearish candle. When it forms near the lower band of the Bands and when the RSI indicates oversold conditions, it can be a long entry signal.

Never forget the confirmation.

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