
Improved Bollinger Band Bounce Set ups
Improved Bollinger Band bounce method can help you filter the trades using making the popular Bollinger Band Bounce trading set up into a really powerful trading strategy.
Bollinger Bands are used for identifying both trends as well as volatility. There are many trading strategies based around Bollinger Bands, but they all fall into either walking the bands methods, which is a trend following strategy or a Bollinger Band bounce set up, which trades the pullbacks. Bollinger band bounce set ups work on the principle that when prices bounce off either the upper or the lower Bollinger Bands, prices tend to retrace or move in the opposite direction. But it begs the question as to what happens when a Bollinger Band Bounce set up fails?
Of course, using stops here to cut the losers quickly...