#BollingerBand Squeeze Breakout
Sharing An Entry Set-up For Cash Market Since Cash Market Is Running Hot Currently
Bollinger Bands Are Volatility Bands with Centre line, Upper & Lower Band
Centre Line Is Simple Moving Average
Default Is 20 Period Simple Moving Average
Sharing An Entry Set-up For Cash Market Since Cash Market Is Running Hot Currently
Bollinger Bands Are Volatility Bands with Centre line, Upper & Lower Band
Centre Line Is Simple Moving Average
Default Is 20 Period Simple Moving Average
Upper & Lower Bands are constructed by Adding / Subtracting Standard Deviation Values from SMA
Default is 2 Standard Deviation Away from 20 SMA for Upper & Lower Band
During Trending Phase, Bollinger Bands generally expand as Standard Deviation Expands in Trending Phase
Default is 2 Standard Deviation Away from 20 SMA for Upper & Lower Band
During Trending Phase, Bollinger Bands generally expand as Standard Deviation Expands in Trending Phase
During consolidation standard deviation drops, causing Upper & Lower Bands to contract towards centre line
This Gives the look like bands are getting squeezed, hence the name Bollinger Band Squeeze Breakout
Entry Setup occurs as below:
This Gives the look like bands are getting squeezed, hence the name Bollinger Band Squeeze Breakout
Entry Setup occurs as below:
1. After Good Rally, Price takes pause, goes in consolidation of few weeks, typically 3-8 weeks
2. Bollinger Bands tighten or Squeeze, indicating volatility contraction
3. While bands are in squeeze, price rises to Upper Band
4. After Touching Upper Band, Price is Rejected
2. Bollinger Bands tighten or Squeeze, indicating volatility contraction
3. While bands are in squeeze, price rises to Upper Band
4. After Touching Upper Band, Price is Rejected
5. price Rejection creates Lower Low on Daily charts, which is called Bearish Fractal
6. High Point from Which price is rejected & creates Bearish Fractal become Breakout Point
6. High Point from Which price is rejected & creates Bearish Fractal become Breakout Point
Example below- Laurus Labs
After Bollinger Band Sqeeuze, Price Moves to Upper Band & Gets Rejected at 514.75
After Rejection, 514.75 Becomes Bollinger Band Squeeze Breakout Point
So whenever 514.75 is reclaimed, good chance of new trend emerging
After Bollinger Band Sqeeuze, Price Moves to Upper Band & Gets Rejected at 514.75
After Rejection, 514.75 Becomes Bollinger Band Squeeze Breakout Point
So whenever 514.75 is reclaimed, good chance of new trend emerging
Some More example from recent rally which has given good gains after Bollinger Band Squeeze Breakout
Tanla Solutions
Tanla Solutions
There are many many examples from recent rally..Please dig deeper if this Entry pattern interests you to create Trading System Around it
Thanks !!
Thanks !!