The best strategies using the Bollinger Bands indicator

One of the trading strategies using the Bollinger Bands is a breakout strategy.

The same chart is an excellent example of a breakout strategy according to the classic scheme, i.e. sell on the pullback to the broken level. As mentioned above, the breakdown is confirmed by MA crossings and the extension of Bollinger Bands.

Apart from the breakout strategy, a trader who sees the bands widening after the support is broken through may sell at the lower Bollinger band. This strategy is also a classic one because after the bands widen the price chart for some time is moving against one of the bands: to the lower band if the trend is descending (as in the example above) or to the upper one if the trend is ascending (see example below).

Opening a position or positions in the upper/lower band is a trend trade when the trend is developing.

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