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to measure volatility, bollinger bands can certainly do that. however to make them work correctly, you need time based charts. not saying they are useless for tick charts, just not for measuring volatility.
I have used BB's on time and tick based charts and I do agree they work better as boundaries and price action areas (like we use Keltners) on Time Based Charts vs. Tick.
Wide Bands means that volatility did occur etc.. Close bands, low volitility, ready for nice moves.
Think about what needs to happen to create a 'trailing band' technically and what do you think that means? There is your answer.
Hint: A very big move.
What does price typically do after a very big move?
Hint: Stall, Consolidate, Range, wait for a direction from the 'people'
What direction will it go after this consolidation?
Hint: Your guess is as good as mine, go to a higher time frame to make an educated guess.
That is all that I do or know, but you will find that it will always (almost always always always) be a major area where it consolidates.
I could not get filled on my short entries. Chase, chase, chase, chase!
Had I not had my 3 limit of trades I would have probably been ok today, but it saves me from bigger mess! I figured it was coming down and nailed the price action, but I guess I didn't see the big 'pops' happening.
What is up w/ this lack of volume? 15 - 144 tick bars before the market open??? Holiday today? Did I miss something?
Ok, 1 good entry, no follow-through hit it perfect at the 76 retrace and I was patient.
Due to the slow movement and lack of volume I was a bit cautious. I am seeing the price action pretty clearly, but sure would save myself some effort if I just followed Horst's advice...
2 other BE trades for trend continuations which were not good trades.
I made a gift in the same area you did. Did you notice the 610? It's pattern is what I call a skipping stone. Horst pointed it out and likes it. It's a low curve of BBs that slows coming into the band. Then it skips and continues on another low curve or straight.
Not sure what you mean? You mean a bull flag bounce off the band when it hits support? I looked at it again but could you post an image? Always up for learning!
Image attached. The pattern looks like a low curve, slowing down, curving gently to the band, then skipping off...just like a stone off water. This is a pretty fair example except for the one zigzag before the skip.
Yup! Bullflag is what I call it. Lately if it is in that direction it skips a TON!
When I first started this method it was the opposite. When it would look like that, it would go short in a heartbeat, but the shorts would just skip all the way to the bottom! It is coming from the side as Henry says, so not as strong.
Lately what is interesting is if you have a band narrowing and large separation from the top then it will just bounce on the two bands and keep going up! The only thing I watch for is how separated the 377 is if it is already underneath the band. Still, hard to predict as with that picture you would expect it to get below the band!