Trading with Bollinger Band® Reversal Patterns

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Bollinger Band® reversal patterns are a powerful technical tool for trading. Read our expert guide to learn the basics of a Bollinger Band® Reversal strategy.

Look to enter from this point or take the traditional entry point using the double top/bottom method of using the neckline as the reference point

The first peak of the double top is seen breaking through the upper Bollinger Band® , after which the second peak is seen falling short of the upper Bollinger Band®. This shows a lack of momentum to the upside by bulls. This can be done by a pure break or a candle close below the neckline. This is completely at the trader’s discretion.are generally taken from recent swing highs in this example, while limits levels can be determined by price action orBollinger Bands® and MACD approach

 

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