Bollinger Bands Indicator and Strategy
Bollinger Bands strategy is probably one of the widely used trading strategies because of its ease of use. Bollinger Bands are chart indicators used for technical analysis of various trading assets.
Bollinger Bands consists of three bands: A simple moving average (middle band), upper and lower bands. The bands indicate the volatility of the assets at the time of trading. The upper and lower bands usually set at standard deviations of +2 and -2 respectively.
Bollinger bands strategy can be used to identify the market reversals and trends which helps to tell where the asset prices are likely to go.
Bollinger Bands Strategy for Bot Trading
For the longest time, Bollinger Band trading was done manually through the reading of complex charts and analysis. But today, it has been simplified with the use of automated trading bots.
Coinner is one of the platforms that makes cryptocurrency trading bots that uses Bollinger Bands strategy. You can make DCA bot in Coinner platform with Bollinger bands strategy. Also you don't have to pay any subscription fee to run DCA bots in Coinner platform.
Read "DCA Trading Strategy And Guide To Create DCA Bot" article to learn more about Coinner DCA bots. Below are the settings for the Bollinger bands strategy in Coinner DCA bot.
Interval and Limit are two major Bollinger Bands trading strategy settings. The time Interval calculates signals, while the Limit is the number of candles used to calculate signals.
The Coinner DCA bot using Bollinger bands, trigger a BUY signal if the price drops lower than lower Bollinger bands. If price increase and cross upper band, the bot will trigger a SELL signal.
You can easily create Free DCA bots in Coinner platform to automate your Bollinger bands trading strategy. You can also use Paper trading accounts in coinner platform to test your strategies first with virtual funds.
Happy Trading !
Disclaimer: The contents of this article should not consider as financial advice. There is a high-risk associated with cryptocurrency trading. The user must do their own research before investing in cryptocurrencies.
