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Bollinger Bands

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Ninja
Super Contributor
Anyone here use BB to determine reversal's or trend continuation's? Do you find them powerful or do they gtive false signals?
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6 REPLIES 6
Not applicable
This is my opinion, but I dont find BB's give good reversal signs. Rather use trend lines combined with fiboncci retracements
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Not applicable
How about trend lines ? One of the most common indicators out there and i have been surprised how many people out there don't use them :)
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Not applicable
you can use BB to confirm a trade and other charts to trigger a trade
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Ninja
Super Contributor
Thanks guys, will use in conjunction with RSI, momentum and Stochastics to confirm....
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JohnnyCash
Super Contributor
BB tend to work nicely to confirm a move. I use it when it breaks above or below the BB and the price trades outside of the bands, it normally signals a continuation of the move in the direction of the breakout.
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_nova
Super Contributor
BB's are great for swing trades in a consolidation. This is where they work best in conjunction with oscillators and pivots. In trends a BB is not the best indicator. For example: In an uptrend they usually get pierced at the upper 2x bolli but often only revert to the median, or else they they pierce the upper bolli and continue up. So in consolidations a bolli is good, but in trends it's not the strongest indicator. In trends your three-touch (or more) trend line is a much better indicator
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