Bollinger Bands: Scalping Volatility
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Trading Volatility Ranges with Bollinger Bands
Bollinger Bands consist of a simple moving average and two standard deviation bands. They adapt to changing volatility conditions, helping traders identify potential price extremes. Technical analysts at SP RESEARCHVIA PVT. LTD. discuss how to trade Bollinger Band setups.
What is a Bollinger Band squeeze and how is it traded?
A Bollinger Band squeeze occurs when the bands narrow, indicating low volatility. This is often followed by a volatility breakout, which traders enter in the direction of the price move that breaks the bands.
Scalping and Range Trading
In sideways markets, the outer bands act as support and resistance levels. Traders can scalp price swings by entering near the bands and targeting the middle moving average line.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
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