Trading Bollinger Bands Volatility Breakouts

[5Pillars]

Quote from JangoFolly:

See if volume follows the breakout, especially large block orders.

Expecting to pick the correct direction consistently and enter at the border of the breakout zone on the initial movement is not realistic. That's like consistently nailing tops and bottoms on reversals.

Retracements/bounces back to the consolidation area can make for a safer entry after the direction of the break has been established. The downside to that strategy is missing those breaks that just run away and don't look back.

That said, I personally find breakouts very hard to do well.

A true "breakout" has a definition which is very different from a headfake......the true breakout will have initiated selling or buying that will "cause" what is seen as the breakout. There is plenty of price movement in these properly defined price moves to make good profits. If you need a tool to see initiated volume flow, here you go.... www.marketdelta.com

 

[murray t turtle]

Quote from JangoFolly:

See if volume follows the breakout, especially large block orders.

Expecting to pick the correct direction consistently and enter at the border of the breakout zone on the initial movement is not realistic. That's like consistently nailing tops and bottoms on reversals.

Retracements/bounces back to the consolidation area can make for a safer entry after the direction of the break has been established. The downside to that strategy is missing those breaks that just run away and don't look back.

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Jayt, i see you have a ''t'' in your name;
Pekelow had some good points also.

Not likely BB or keltner channels will give you the answer you are looking for.

Actually amazing how some simple stuff can help;
not really applicable to noise daytrading, but see if you can find a way for example, to apply fact of most of trends down last several months.

T-trading Hint ,since most of trends are down , its not a 50-50 coinflip.

See if you can make use of that mostly downtrend wisdom, intraday its more than 50%;
BB dont really help much to identify a trend.Trend line/ ma do.
[your question]

murray TT