Hi i’m using bollinger band
I set profit on the upper or lower band using 1h or 4h but i noticed after an hour the band is squeezing tight resulting for my target profit above or lowér the band. If this happen do I need to adjust my profit target or stick to the plan. Thank you
I’m not a BB user but let me see if I’ve got the logic right to help you.
You set the original TP at the boundary of the BB presumably because you believed it was unlikely price would get significantly beyond the boundary. The logic of the plan therefore means that wherever boundary is, it is the dividing line between holding and not holding: wherever it is, it still means price is unlikely to get much beyond it. So reducing the distance to your TP if the band constricts is the right thing according to your plan - it is in fact sticking to the plan.