yaknowthatguy
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hey gang - brand newby to forex trading, and am still learning. Have a paper account and am just getting familiar with the mechanics of trades, so am not into the real money yet.
I have a question regarding trade timing and bollinger bands. Today, for instance, I'm watching the pound/dollar on both 1hour and 5minute charts.
The 5minute chart shows fairly wide bollinger bands, and a slowly climbing momentum - which, if I understand correctly, shows a somewhat lateral, stable market. The 1 hour chart shows bands that aren't wide (but aren't necked down tight either), and momentum that's falling - which may be a precursor of change.
To me, on the surface, these appear opposed to each other - one stable, one which may show a trend change, but the quote price is still the same regardless. So how do you handle the timing on a trade with conditions like this? Wait for different criteria to show themselves? Or are there other settings that should be used to provide the standard deviations for the bollinger bands themselves?
any help is greatly appreciated. Thanks everyone!
yaknowthatguy
I have a question regarding trade timing and bollinger bands. Today, for instance, I'm watching the pound/dollar on both 1hour and 5minute charts.
The 5minute chart shows fairly wide bollinger bands, and a slowly climbing momentum - which, if I understand correctly, shows a somewhat lateral, stable market. The 1 hour chart shows bands that aren't wide (but aren't necked down tight either), and momentum that's falling - which may be a precursor of change.
To me, on the surface, these appear opposed to each other - one stable, one which may show a trend change, but the quote price is still the same regardless. So how do you handle the timing on a trade with conditions like this? Wait for different criteria to show themselves? Or are there other settings that should be used to provide the standard deviations for the bollinger bands themselves?
any help is greatly appreciated. Thanks everyone!
yaknowthatguy
