Friday, 1 April 2016

Bollinger Bands and RSI


Bollinger Bands and RSI
Bollinger Bands indicator is not action, it must be paired with other indicators before making a decision to buy or sell.
If we combine the Bollinger Bands with RSI then:

If the price is outside the upper band or the same, while the RSI is below the overbought zone (70-80), then this means there will be a continuation of the uptrend.
And vice versa when the RSI are overbought and are leaving diarea overbought area, then this means there will be a reversal of the trend.
If the price is outside the lower band or the same, while the RSI is below the oversold zone (20-30), then this means there will be a continuation of the downtrend is going on. Conversely when the RSI are oversold and are leaving diarea oversold area, then this means there will be a reversal of the trend.

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