Bollinger Bands TA
Bollinger Bands serve as a technical analysis tool that assists in identifying relatively high and low price levels. By leveraging this information, you can potentially purchase at more affordable prices and sell at higher ones.
This indicator comprises three lines: the middle line represents a simple moving average, while the other two lines are plotted a specific distance above and below it. This distance is determined by standard deviation, which evaluates the price variation from its average value over a specified time frame. Greater distances between the upper and lower bands signify increased price volatility.
To employ Bollinger Bands TA with Gunbot, you can set the percentage from the lower band for purchasing and the percentage from the upper band for selling. Orders are executed after the price moves beyond the established level and then reverts. Keep in mind that Bollinger Bands represent just one of many market analysis tools, so ensure you comprehend their functionality before relying solely on them for trading decisions.
Implementation Guide
Purchase Method Conditions
A buy order is permitted when the price dips below the lower band and subsequently re-enters.
Sale Method Conditions
A sell order is authorized when the price exceeds the upper band and then retracts.
Profit protection is an optional feature for this strategy.
Note that this may result in sell orders below your break-even point.
Trading Illustration
An example of how this strategy might perform in trading. Specifics and configurations
The infographic below demonstrates what prompts trades using this tactic.
