Firstly you inculcate that it can apply any chart time frame and any instrument
Noteworthy, for day traders it is more effective on 5 minutes charts.
Available at your terminal!
It has “BUILT IN VERSION” in your mt4/5 terminal, therefore, you don’t need to put in anything
Definition: It is a volatility indicator which measures the upper and lower limit of the upcoming move.
Three Kinds of Bands!
There are three types of bads so you need to pay attention to what they are?
1.Middle band: it usually associates with 20 period moving averages meaning an average of previous 20 candles.
Upper bands: it is the upper limit of the move; meaning the market could go up till the upper band level
Lower Bands: These bands show off the maximum downward move for the time under consideration.
When to react!!!
You can imply it on your terminal. And also make sure to have period separator at your chart.
As the market moves on you have to look when the three bands squeeze or to have minimum spread.
After spotting on squeeze you have to see at least 2/3 candles.
if candles were buying you would buy the stop loss would be the previous spike low and whatever your stop-loss is, your target could be the.