#BollingerBands #TechnicalAnalysis #Tesla #Ethereum #Cardano #GameStop #Twilio #MSTR
👋JOIN THE COMMUNITY:   / investanswers  
DISCLAIMER: InvestAnswers does not provide financial, investment, tax, or legal advice. None of the content on the InvestAnswers channels is financial, investment, tax, or legal advice and should not be taken as such; the content is intended only for educational and entertainment purposes. InvestAnswers (James) shares some of his trades as learning examples but they are only relevant to his specific portfolio allocation, risk tolerance & financial expertise, may not constitute a comprehensive or complete discussion of such topics, and should not be emulated. The content of this video is solely the opinion(s) of the speaker who is not a licensed financial advisor or registered investment advisor. Trading equities or cryptocurrencies poses considerable risk of loss. Kindly use your judgment and do your own research at all times. You are solely responsible for your own financial, investing, and trading decisions.

0:00 Intro
0:10 Charting Tool TradingView
0:20 Chart Settings
My TradingView Settings
Bollinger period length 100
I use 2 or 4 hour periods
I use 2 Standard Deviations
RSI 10

1:00 Charts we will analyze today - ETH ADA PLTR MSTR TWLO & GME

2:00 Bollinger Bands: Defined Helps determine whether prices are high or low on a relative basis
Used in pairs, both upper and lower bands and in conjunction with a moving average
By default, Bollinger Bands are set to 2.0 Standard deviations ie 95% of all the price action is in the channels

2:30 Empirical Rule in Statistics
2.0 Standard deviations ie 95% Refresher
I play here
and here

3:30 Bollinger Bands in Simple Terms The bands are often used to determine overbought and oversold conditions.

4:00 Why I Use Bollinger Bands I like to follow the patterns and what I call the rhythmic snake movements of crypto and equities. The meandering dance becomes predictable over time.

5:00 Bollinger Bands Widening & Tightening Bollinger Bands widen as price volatility increases
Bands tighten as volatility declines
Wider bands imply a higher standard deviation, which means an avg price is less likely to be concentrated near the mean
Gives me context and structure around the price
(Ethereum vs Gamestop)
Higher VIX
Lower VIX
The Mean

6:00 No Man’s/Woman’s Land (Tesla)
Danger Zone
5%
Danger Zone 5%
Oppty Zone 5%
Oppty Zone 5%

7:30 Patience - Hunter in the Woods

8:30 Mean Reversion
Back to the Mean
Danger Zone
5%
The Mean is Falling
Danger Zone
5%
Oppty Zone 5%

9:00 Bollinger Bands Squeeze (Cardano)
The Bollinger Band Squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow
Volatility contraction or narrowing of the bands can foreshadow a significant advance or decline
Once the squeeze play is on, a subsequent band break signals the start of a new move

10:00 Bollinger Bands = Variable Support + Resistance
In the case of walking the upper band, this is typically a sign of strength since it takes significant strength to continue to push this resistance level
In other conditions, the asset would be considered overbought
Walking the Upper Band (Ethereum)

12:00 WALKING THE UPPER BAND

In the case of walking the lower band, this is typically a sign of weakness
It held great support until it broke down today but was quickly bought up adding 10% today
Walking the Lower Band (Palantir)
WALKING THE LOWER BAND

13:00 The Enchilada - BB, FibRetr & RSI
Danger Zone
5%
Danger Zone
RSI 90
Kill Zone
5%
Kill Zone
RSI 11
Fib 0.786

16:00 Conclusions
Gives me spatial awareness of where the asset is between overbought and oversold
Not to be used standalone
Great for affirming support & resistance levels
Amazing at enforcing patience to wait for the 5% zones
Get comfortable with your own settings - Time, Length and RSI

BEWARE:
Do not trade on TA Alone. Make sure you take into account all fundamentals.

Future IA TA Tuesday Videos

VPSV
Stochastics
Bollinger bands
Candlesticks
Fibonacci retracements
On balance volume
Up Trends (bullish)
Down Trends (bearish)
Consolidation (range riders)
Volatility
IA TA Full Agenda
Trend lines
Support & resistance
Moving averages
Exponential moving avgs
RSI
MACD
RSI + MACD
Breakouts
Gaps
Momentum


Patreon.com/InvestAnswers


Want more?
(you know what to do!)