Bands of Bollinger Strategy for Crypto Trading

The majority of the investors coincides that operating with Crypto Trading is so easy that even someone who does not know of the topic can invest and see how his money is growing little by little in every operation.Although even if you are an expert in the matter it is important to use winning strategies for Crypto Trading.

stock market Bollinger strategy

The Bollinger bands strategy.

In this occasion we will speak about the strategy of Bands of Bollinger, a tactic that is employed for short time ranges that go from 60 seconds until 15 minutes and that, in contrast to the strategy of 60 seconds, this one needs previous work to investigate and evaluate between graphs before being able to put it into practice.

In contrast from the main believe that those who begin in this world, it is important to have knowledge previous to investments and have all the trading tools available in the internet to have   the same graphs that then will serve to read and to put into practice the strategy of Bands of Bollinger.

This one is considered to be one of the most laborious strategies but it is also one of the surest tactics and with higher winning rate if one can understand how to use correctly. That’s why important it is to have knowledge to be able to use the bands of Bollinger, what elements enter the game and how to use them to obtain benefits from it.

How does this strategy work?

Since we have already explained, this strategy serves to be employed for short time periods like for example 60 seconds, 5 minutes and even lengthening it to a maximum 15 minutes. This does that the bands of Bollinger go inside the classification of fisherman type of strategies, because they serve to obtain benefits in a fast and very secure form.

Bollinger strategy chart

Graphs bands of bollinger

To be able to put into practice these tactics it is necessary to have the graphs showing the previous days of  our assets movements in the markets.

If we can use  weeks or even months  charts it is better, because this is translated in having more information and power to differentiate statistics to find with more facility a pattern of similar performance over the course of time. This behavior is the one we must  use in our advantage to assure a high grade of wins.

What Are the Bollinger bands?

To be able to understand better what they are it is important to bear in mind the importance of the graphs, where the information is gathered on real time about the changes that the assets are having. In general this information is taking form of bars that rise and go down according to the behavior of the asset in this moment.

 

It is there when game of the Bollinger bands begins, which is reflected in two lines that surround these bars and delimit them, marking this way any type of movement that appears during the day.

These lines, (generally there are only two), they allow to mark a few clear limits at the same time both in the top part of the graph and in the low one , making it to be easier to recognize the state of the market and have power to think in what moments it shows more movement or changes and in which moment it appears calmer.

When we speak about bands of Bollinger it is inevitable to not name two words: expansion and contraction. This is because they are very important to know if it is a good idea to act or better to wait until things should become stable and in this way we can be completely sure before we invest.

When the bars contract

If we observe a graph with the Bollinger bars surrounding it, we see two clear tendencies, some to be expended and others to contract. In case of contracting the two lines come closer and it shortens the distance between them.

Carried away graphs bands bollinger

That means that in this moment there is almost no movement on the market, marking this way a tendency to the fall to the volatile nature of the assets. When we observe this so short distance between lines it is the ideal moment to invest strongly. For the small credit movement is difficult that the assets change course, being like that a sure value to extract benefit of our initial investment.

In fact, the idea of using the bands of Bollinger is to be able to be located where these short distances are and always to invest in these moments in which the market seems calm down and without sudden changes.

bollinger blueprint chart for trading

When the bars expand

In contrast to the previous case, when the market is slightly in a mess the bars drift apart, evidently showing a very high peak between the low bar and Superior one. In this case the drawing makes clear that there is a lot of activity on the financial market, being this a sign of that in this moment the best idea is to, to act carefully and hope that this movement should calm down a little,.

Important note: Remember that only takes one second for that the tendency of assets changes completely.

That’s why it is advisable that when the lines show a clear expansion, we think about how for another assets where to invest or in case of wanting to risk, to do it in short time spaces as there it are 60 seconds or, as maximum, a period of time of 5 minutes.

How to put into practice the strategy of bands of Bollinger?

man trading bollinger strategyTo use this strategy only time is needed, I struggle and a wide knowledge of the hardware that it is possible to use in the trading of binary investments. It is important to do a compilation previous to the graphs of the assets that is a source of our attention to see what its tendency is.

To practice this investment strategies

If it is possible to obtain months graphs behind, better, since it is more information to be able to study and value. Once all this information is compiled, it is time to begin drawing the lines that wrap the bars of the graphs.

A trick and recommendation is to put the bars in different colors to avoid confusions, marking for example green color for the positive polarity and red for the denial. This will do that it turns out to be easier to observe the tendency of expansion and contraction of every bar, achieving that it is simpler to look for these moments of little activity on the market and to use it for the proper benefit.


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