5 Minute Scalping Technique Using Bollinger Bands (Can it be applied to stocks?)
Why Bollinger Bands?
No indicator is perfect and a trader must be prepared to take advantage of its strengths and know its weak points. With whatever indicator is used, a trader must be able to separate which is the real signal or voice and which is a signal diversion or noise. The positive side of Bollinger Bands, among others, is that it is very accurate with possible profit opportunities of up to around 70 percent. The downside is that this indicator tends to go against the trend so the risk is also not exactly small. For this reason, traders are advised to add other indicators such as the Oscillator, Parabolic SAR, EMA, Price Action, and ADX (Average Directional Index).
Trading Setups That Need Attention, It's good to remember that scalping is a trading method that prioritizes speed to either enter or exit the market. Here, traders only take thin profits, between five and ten pips. However, transactions are carried out with high frequency or repeatedly.
Buying Rules:
Market conditions are sideways, ranging, or almost flat. When the price goes down and touches the lower Bollinger Bands, open a buy position. Take profit when the price touches the upper Bollinger Bands.
Selling Rules Market conditions are sideways, ranging, or almost flat. When the price goes up and touches the upper Bollinger Bands, open a sell position. Take profit when the price touches the lower Bollinger Bands.
your comments and suggestions guys!! 🤳
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