Bollinger Bands are one of the most misunderstood tools in trading.
Most traders think tight bands = buy signal. Wrong.
Tight bands = low volatility. A breakout is coming, but direction? Unknown.
Wide bands = high volatility. Price is stretched. Mean reversion incoming.
The real alpha:
- Don't chase breakouts blindly
- Wait for confirmation
- Use BB with volume and momentum
Stop trading bands like a textbook. Trade them like the market actually moves.
Full breakdown in the video. Watch if you're serious about reading volatility.
Most traders think tight bands = buy signal. Wrong.
Tight bands = low volatility. A breakout is coming, but direction? Unknown.
Wide bands = high volatility. Price is stretched. Mean reversion incoming.
The real alpha:
- Don't chase breakouts blindly
- Wait for confirmation
- Use BB with volume and momentum
Stop trading bands like a textbook. Trade them like the market actually moves.
Full breakdown in the video. Watch if you're serious about reading volatility.