Bollinger Squeeze

[Glorin]

How often can an experience trader predict which direction a bullinger bounce will go?

I frequently see a lot of squeezes but my ability to predict which way they’ll go isn’t as solid as I would like. I’m looking at higher time frames from my home frame, but as most people know, many time frames contradict the movements of the others. From what I’ve found, one timeframe removed from my home frame is best for determining the direction, but it isn’t bullet proof.

Thanks

[SanMiguel]

How often can an experience trader predict which direction a bullinger bounce will go?

I frequently see a lot of squeezes but my ability to predict which way they’ll go isn’t as solid as I would like. I’m looking at higher time frames from my home frame, but as most people know, many time frames contradict the movements of the others. From what I’ve found, one timeframe removed from my home frame is best for determining the direction, but it isn’t bullet proof.

Thanks

Identify the bollinger squeeze on the higher timeframe.
Switch to a lower timeframe and apply 2 bollingers. One with a 20 period, 2 standard deviation and a 2nd with a 20 period 1 standard deviation.
If price breaks to the upside of the squeeze and then stays above the 20:1 on the lower timeframe, then you have a BUY ZONE setup.

Opposite for SELL ZONE setups.

Now…that’s the theory, identifying a true bollinger squeeze is a different matter, you will almost always want the price to break a support or resistance zone.

Have a read of this and come join us on the bollinger band thread if you want:
Using Bollinger Band “Bands” To Gauge Trends

This is a good one to watch also: YouTube - Intraday Bollinger Trading!

[Glorin]

Identify the bollinger squeeze on the higher timeframe.
Switch to a lower timeframe and apply 2 bollingers. One with a 20 period, 2 standard deviation and a 2nd with a 20 period 1 standard deviation.
If price breaks to the upside of the squeeze and then stays above the 20:1 on the lower timeframe, then you have a BUY ZONE setup.

Opposite for SELL ZONE setups.

Now…that’s the theory, identifying a true bollinger squeeze is a different matter, you will almost always want the price to break a support or resistance zone.

Have a read of this and come join us on the bollinger band thread if you want:
Using Bollinger Band “Bands” To Gauge Trends

Heh, speak of the devil. I just took a break from reading that thread.

Thanks for the reply, I’ll definitely play around with your suggestion.

[SanMiguel]

Heh, speak of the devil. I just took a break from reading that thread.

Thanks for the reply, I’ll definitely play around with your suggestion.

It is quite a long thread now with many different bollinger based systems on it. Have a scan through the stuff on the 1st post and let us know if there are any more questions.

[Glorin]

It is quite a long thread now with many different bollinger based systems on it. Have a scan through the stuff on the 1st post and let us know if there are any more questions.

Semester just ended so I have quite a bit of free time; just got done reading through a Tymen thread, so I have no problems wading through a ~200+ page thread

[SanMiguel]

Semester just ended so I have quite a bit of free time; just got done reading through a Tymen thread, so I have no problems wading through a ~200+ page thread

Just don’t pick too many things at once - learn one system very well.
I have never read through tymen’s thread though I use candlesticks all the time and if I hadn’t settled on my own way of trading then I very likely would have gone into the joy of candlestick trading

There is a lot of blog type stuff on the bolly band thread so you have to wade though a lot of chat to get to the good stuff.

[jonesboy]

I would also take a look at Tymens thread:
http://forums.babypips.com/newbie-island/32400-finest-trend-trading.html

And Gravitons thread:
http://forums.babypips.com/newbie-island/33733-multi-time-frame-trend-trading.html