After Bollinger suffered a breakout, of course the price will move very fast and strong. This is a very important moment for the elections caused profit. But the problem is to where the movement is going to stop and reverse direction? So that we can maintain our profit?
With this technique we can determine when the Price will reverse direction, so that the Profit that we have get the stay signed in to the account and not lost.
Here's how:
– When bollinger break up, the band's increasingly high rise low band getting down. If the low band is higher than the band's previous low, mean and High price has been overbought before we think of as its peak. Further prices will fall for the correction.
– Similarly, When bollinger bands break down, the band's increasingly high rise low band getting down. If the high band is lower than the band's previous high, meaning prices have been oversold and Low 01 we think of as the next Valley. the price will go up for a correction.
But if it turns out that the price was able to penetrate the top, we think has happened break advanced and price will continue creeping up because his energies so powerful.
With this forex tips we can predict to which the tip of the trends, so when bollingerband already showed the tip of a trend, there are 3 steps that we can take are:
1. closing an open position at the end of the trend.
2. Open a new position at the end of the trend in a direction contrary to the prediction of the trend.
3. Wait for confirmation if the trend continues, if it continues then the mambuka position in line with the trend.
