Here is our Bollinger Bands Trading Strategy #2 –
Here is another tricky condition to minimize loss (and maximize profit):
The 3BB strategy carries a high probability of breaking the median Bollinger Band with a 98.5% confidence level.
To enhance the likelihood of a 3BB scenario, look for specific conditions in the 2nd candle:
When the second candle concludes its session above the upper band of the 2SD Bollinger, it signals a robust potential for a 3BB scenario. Therefore, my preference is for the second candle to conclude its session within the upper boundaries of both the 1 SD Bollinger and 2 SD Bollinger.
By ‘closure,’ I mean that both the opening and closing prices of the green candle fall within the range defined by the 1 SD and 2 SD Bollinger bands.
By following this strategy, you aim to minimize losses by responding to potential reversal signals and maximize profits by taking advantage of the 3BB strategy’s high-confidence breakout opportunities.