Bitcoin in Range: How to Trade the Consolidation using Bollinger Bands
Objective: Instruct on how to take advantage of low volatility before a big movement.
Deep Analysis: When the Bollinger Bands "squeeze," it means that volatility is at historic lows. This pattern historically precedes explosive movements. The price compresses like a spring.
Trading Signal:
Breakout Entry: Place entry orders (Long and Short) 1 ATR (Average True Range) outside the upper and lower bands. When the candle breaks with volume above the EMA20, the order is activated.
"False Squeeze" Rule: If the initial breakout reverses in the next hour, it is a liquidity trap. Trade the reversal of the breakout with a target of the opposite band.
#BollingerBands #BTCPrice #Scalping #Breakout #EstrategiaDeTrading
