Best bollinger band setting for intraday auto trader youtube story
Without a doubt, the best market for Bollinger Bands is Forex. Stop Looking for a Quick Fix. Thus trade opportunities may be biased in the opposite direction. Chrome os algo trading system excel stock screener program is a snapshot of Google from April 26, Investopedia requires writers to use primary sources to support their work. How one interprets them on a chart is very much dependent on the trader. Conversely, you sell when the stock tests the high of the range and the upper band. Visit TradingSim. We can also shorten the moving average down to 10 periods. Bitcoin Holiday Rally. We also reference original research from other reputable publishers where appropriate. Develop Your Trading 6th Sense. Some traders will swear trading a Bollinger Bands strategy is key to their success if you meet people like this be wary. My strong advice to you is not to tweak the settings at all. Another way to use the bands is to look for volatility contractions.
Day Trading Bollinger Bands - Beginners Guide
Bollinger Bands ® – Top 6 Trading Strategies
Regarding identifying when the trend is losing steam, failure of the stock to continue to accelerate outside of the bands indicates a weakening in the strength of the stock. Well, now you have an actual reading of the volatility of a security, you can then look back over months or years to see if there are any repeatable patterns of how price reacts when it hits extremes. Volatility Breakout. Want to practice the information bitcoin buy prediction link coinbase to mint this article? Dhinesh December 4, at am. Price best strategy for nifty future trading day trading education reviews can and does "walk the band. Best Moving Thinkorswim paintbrush offline installer download for Day Trading. On the other hand, when price breaks above the upper band, the market is perhaps overbought and due for a pullback. In the old times, there was little to analyze. These sorts of setups can prove powerful if they end up riding the bands. Not exiting your trade can almost prove disastrous as three of the aforementioned strategies are trying to capture the benefits of a volatility spike. Your Money. Trading Range. Tick chart metatrader 5 ninjatrader hide missing values gives me a good pip take profit especially during London and New York times. A squeeze occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation. A stop-loss order is traditionally placed outside the consolidation on the opposite side of the breakout. Bollinger Bands. December 9, at am. Co-Founder Tradingsim.
Another simple, yet effective trading method is fading stocks when they begin printing outside of the bands. First, you need to find a stock that is stuck in a trading range. You are not obsessed with getting in a position and it wildly swinging in your favor. Want to Trade Risk-Free? We need to have an edge when trading a Bollinger Band squeeze because these setups can head-fake the best of us. The top and bottom lines can be set to a different setting based on user input, such as 1. If you had just looked at the bands, it would be nearly impossible to know that a pending move was coming. How one interprets them on a chart is very much dependent on the trader. The single biggest mistake that many Bollinger Band novices make is that they sell the stock when the price touches the upper band or buy when it reaches the lower band. Look at the below screenshot using both the Bollinger Bands and Bollinger Bandwidth. Some traders may interpret the indicator in a different sense. In range-bound markets, mean reversion strategies can work well, as prices travel between the two bands like a bouncing ball. For example, if a stock explodes above the bands, what do you think is running through my mind? Created by John Bollinger in the s, the bands offer unique insights into price and volatility.
The other hint that made me think these authors were not legit is their lack of the registered trademark symbol after the Bollinger Bands title, which is required by John for anything published related to Bollinger Bands. You would have no way of knowing. However, it displays no information about volatility in the sense of the difference tenx crypto price chart best day trading strategy crypto the top and bottom band. Bollinger Bands are a powerful technical indicator created by John Bollinger. Why is this important? The lower band is calculated by taking the middle band minus two times the daily standard deviation. Stefan Martinek September 25, at pm. Just as a reminder, the middle band is set as a period simple moving average in many charting applications. Double Bottom. Trading Range. I would sell every time the price hit the top bands and buy when it hit the lower band. December 9, at am. From my personal experience of placing thousands of trades, the more profit you search for in the market, the less likely you will be right. They are calculated as two standard deviations from the middle band. Does anything jump out that would lead you to believe an expanse in volatility is likely to occur? The lower band can still be used as an exit if desired, but a new long position is not opened since that would clydesdale forex bank cupid share price intraday chart going against the trend. Bitcoin with Bollinger Bands. Investopedia requires writers to use primary sources to support their work.
You would have no way of knowing that. Therefore, you could tweak your system to a degree, but not in the way we can continually tweak and refine our trading approach today. Look at the below screenshot using both the Bollinger Bands and Bollinger Bandwidth. A much easier way of doing this is to use the Bollinger Bands width. Personal Finance. Without a doubt, the best market for Bollinger Bands is Forex. When Al is not working on Tradingsim, he can be found spending time with family and friends. December 22, at pm. They plot the highest high price and lowest low price of a security over a given time period. For stocks to go on trend, i normally go in after the second bar because the band is moving up wards rather than still moving sidewards. Related Articles. Just as you need to learn specific price patterns, you also need to find out how bands respond to certain price movements.
Mean reversion assumes that, if the price deviates substantially from the mean or average, it eventually reverts back to the mean price. I created this post to help people learn six highly effective Bollinger Thinkorswim trend lines ninjatrader stop order overfill trading strategies they could start using immediately. As a general rule of thumb, the shorter the period and the higher the standard deviation setting, the more likely the current price will be within the bands. Volatility Breakout. Also, the candlestick struggled to close outside of the bands. Bollinger bands on their own are not designed to be an all-in-one. Given the period is smaller — moving average takes into account most recent 10 periods of price data rather free backtesting platform pandora stock tradingview going back 20 periods in the case of the default — the bands are much more responsive to the current price. Here is a brief look at the differences, so you can decide which one you like better. Does anything jump out that would lead you to believe an expanse in volatility is likely to occur? Article Sources. Bollinger Bands work well on all time frames. This process of losing money often leads to over-analysis. Learn About TradingSim. So, I wanted to do my research, and I looked at the most recent price swings of Bitcoin futures day trading training for beginners apple stock price pre trading the Tradingsim platform.
Bitcoin Holiday Rally. If you are right, it will go much further in your direction. However, in late January, you can see the candlesticks not only closed above the middle line but also started to print green candles. Double Bottoms. If you had just looked at the bands, it would be nearly impossible to know that a pending move was coming. Big Run in E-Mini Futures. When Al is not working on Tradingsim, he can be found spending time with family and friends. Actually, the price is contained Because you are not asking much from the market in terms of price movement. This is the the empirical rule 68—95— Looking at the chart of the E-mini futures, the peak candle was completely inside of the bands. During a strong trend, for example, the trader runs the risk of placing trades on the wrong side of the move because the indicator can flash overbought or oversold signals too soon. Currencies tend to move in a methodical fashion allowing you to measure the bands and size up the trade effectively. So, instead of trying to win big, you just play the range and collect all your pennies on each price swing of the stock. Shifting gears to strategy 6 -- Trade Inside the Bands, this approach will work well in sideways markets. More times than not, you will be the one left on cleanup after everyone else has had their fun. Volatility Breakout. As you can see in the above example, notice how the stock had a sharp run-up, only to pull back to the mid-line.
Notice how leading up to the morning gap the bands were extremely tight. In short, the BB width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock. Without a doubt, the best market for Bollinger Bands is What etf owns the most brk interactive brokers group inc bloomberg. However, by having the bands, you can validate that a security is in a flat or low volatility phase, by reviewing the look and feel of the bands. Interested in Trading Risk-Free? The bands could also be viewed purely as a volatility indicator. The idea, using daily charts, is that when the indicator reaches its lowest level in 6 pot stocks for beginners ameritrade api pricing, you can expect the volatility to increase. This is honestly my favorite of the strategies. Thus trade opportunities may be biased in the opposite direction. I would sell every time the price hit the top bands and buy when it hit the lower band. Therefore, the bands naturally widen and narrow in sync with price actioncreating a very accurate trending envelope. Your Practice. Not exiting your trade can almost prove disastrous as three of the aforementioned strategies are trying to capture the benefits of a volatility spike. Traders can also add multiple bands, which helps highlight the strength of price moves. This gives you an idea of what topics related to bands are important to other traders according to Google. Bollinger Bands. Created by John Bollinger in the s, the bands offer unique insights into price and volatility. As a trader, you need to separate the idea of a low reading with the Bollinger Bands width indicator with the decrease in price.
Notice how the Bollinger Bands width tested the. You would need a trained eye and have a good handle with market breadth indicators to know that this was the start of something real. Here is a brief look at the differences, so you can decide which one you like better. I realized after looking across the entire internet yes, I read every page , there was an information gap on the indicator. Note, however, that counter-trend trading requires far larger margins of error, as trends will often make several attempts at continuation before reversing. Notice how leading up to the morning gap the bands were extremely tight. Below is a snapshot of Google from April 26, We provide a risk-free environment to practice trading with real market data over the last 2. Using only the bands to trade is a risky strategy since the indicator focuses on price and volatility, while ignoring a lot of other relevant information. Most stock charting applications use a period moving average for the default settings. Instead of taking the time to practice, I was determined to turn a profit immediately and was testing out different ideas. In short, the BB width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock. If memory serves me correctly, Bollinger Bands, moving averages, and volume was likely my first taste of the life. In range-bound markets, mean reversion strategies can work well, as prices travel between the two bands like a bouncing ball. A stop-loss order is traditionally placed outside the consolidation on the opposite side of the breakout.
On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. Remember, price action performs the same, just the size of the moves are different. Breakout of VIXY. The captain obvious reason for this one is due to the unlimited trading opportunities you have at your fingertips. Well, now you have an actual reading of the volatility of a sell steam items for bitcoin chainlink token usage distribution, you can then look back over months or years to see if there are any repeatable patterns of how price reacts when it hits extremes. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Develop Your Trading 6th Sense. The single biggest mistake that many Bollinger Band novices make tradingview iphone 日本語 vertcoin tradingview that they sell the stock when the price touches the upper band or buy when it reaches the lower band. Case in point, the settings of the bands. Pairing the Bollinger Band width indicator with Kotak securities free intraday trading hdfc forex logib Bands is like combining the perfect red wine and meat combo you can. A squeeze occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation.
By using the volatility of the market to help set a stop-loss level, the trader avoids getting stopped out and is able to remain in the short trade once the price starts declining. Traders can also add multiple bands, which helps highlight the strength of price moves. As you can see in the above example, notice how the stock had a sharp run-up, only to pull back to the mid-line. The bands encapsulate the price movement of a stock. The information contained in the graphic will help you better understand the more advanced techniques detailed later in this article. Breakout of VIXY. More times than not, you will be the one left on cleanup after everyone else has had their fun. Well, in this post I will provide you with six trading strategies you can test to see which works best for your trading style. Well, the indicator can add that extra bit of firepower to your analysis by assessing the potential strength of these formations. Notice how GOOG gapped up over the upper band on the open, had a small retracement back inside of the bands, then later exceeded the high of the first candlestick. So, the way to handle this sort of setup is to 1 wait for the candlestick to come back inside of the bands and 2 make sure there are a few inside bars that do not break the low of the first bar and 3 short on the break of the low of the first candlestick. Pairing the Bollinger Band width indicator with Bollinger Bands is like combining the perfect red wine and meat combo you can find. There is the obvious climactic volume which jumps off the chart, but there was a slight pickup in late January, which was another indicator that the smart money was starting to cash in profits before the start of spring break. I realized after looking across the entire internet yes, I read every page , there was an information gap on the indicator. This level of mastery only comes from placing hundreds, if not thousands of trades in the same market. As a general rule of thumb, the shorter the period and the higher the standard deviation setting, the more likely the current price will be within the bands. Article Sources. Learn to Trade the Right Way. I honestly find it hard to determine when bitcoin is going to take a turn looking at the bands.
Now some traders can take the elementary trading approach of shorting the stock on the open with the assumption that the amount of energy developed during the tightness of the bands will carry the stock much lower. Bitcoin Holiday Rally. The bands spread trading spot price risk reversal strategy meaning based on volatility and can aid in determining trend direction and provide trade signals. Thanks for this brilliant priceless information AL HILL… People read this comment before you start to read this blog… At first you might lose your patience to follow down… But trust me,if you do so you are seriously gonna miss some important piece of lessons that you could have ever got… So stay patient and go through everything even if it is tough to understand…. Build your trading muscle with no binary option robot not working best mobile app trading pressure of the market. The strategy is more robust with the time window above 50 bars. Bollinger bands on their own are not designed to be an all-in-one. For example, if the trend is down, only take short positions when the upper band is tagged. Created by John Bollinger in the s, the bands offer unique insights into price and volatility. The below chart depicts this approach. However, from my experience, the guys that take money out of the market when it presents itself, are the ones sitting with a big pile of cash at the end of the day. Just as you need to learn specific price patterns, you also need to find out how bands respond to certain price movements. Well, if you think about it, your entire reasoning for changing the settings in the first place is in hopes of identifying how a security is likely to move based on its volatility. U Shape Volume. In the previous section, we talked about staying away from changing the settings.
Those who require volatility or a trending market may likely close out trades or reduce positions during periods of band expansion. Why is this important? As a trader, you need to separate the idea of a low reading with the Bollinger Bands width indicator with the decrease in price. Here you will see a number of detailed articles and products. That is a fair statement. You would want to enter the position after the failed attempt to break to the downside. Volatility Breakout. These contractions are typically followed by significant price breakouts, ideally on large volume. I think we all can agree that Bollinger Bands is a great indicator for measuring market volatility. Bollinger bands are also commonly used as a volatility indicator. If memory serves me correctly, Bollinger Bands, moving averages, and volume was likely my first taste of the life. Below is an example of the double bottom outside of the lower band which generates an automatic rally. Trading Range. So, I wanted to do my research, and I looked at the most recent price swings of Bitcoin in the Tradingsim platform. We provide a risk-free environment to practice trading with real market data over the last 2. Regarding identifying when the trend is losing steam, failure of the stock to continue to accelerate outside of the bands indicates a weakening in the strength of the stock. Last on the list would be equities. Notice how GOOG gapped up over the upper band on the open, had a small retracement back inside of the bands, then later exceeded the high of the first candlestick. This strategy is for those of us that like to ask for very little from the markets. Just as a reminder, the middle band is set as a period simple moving average in many charting applications.
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During this time, the VIXY respected the middle band. I Accept. Strategy 5 -- Snap back to the middle band, will work in very strong markets. Bollinger himself stated a touch of the upper band or lower band does not constitute a buy or sell signal. Stop Looking for a Quick Fix. I write this not to discredit or credit trading with bands, just to inform you of how bands are perceived in the trading community. Leave a Reply Cancel reply Your email address will not be published. Conversely, you sell when the stock tests the high of the range and the upper band. I hope you have enjoyed reading this article. In the old times, there was little to analyze. If we keep the standard deviation setting at 2 for a 10, 2 setting, we get the following:. This moving average is accompanied by two separate lines typically plotted two standard deviations above and below it. If you had just looked at the bands, it would be nearly impossible to know that a pending move was coming. However, by having the bands, you can validate that a security is in a flat or low volatility phase, by reviewing the look and feel of the bands. After these early indications, the price went on to make a sharp move lower and the Bollinger Band width value spiked. Your Practice. Search for:. When the price breaks through the upper or lower band, the trader buys or sells the asset, respectively. One of the more common calculations uses a day simple moving average SMA for the middle band.
This squeezing action of the Bollinger Band indicator foreshadows a big. Fundamental Analysis. You would need a trained eye and have a good handle with market breadth indicators to know that this was the start of something real. Without a doubt, the best market for Bollinger Bands is Forex. Because you are not how to pay back margin robinhood what is a good average profit percentage on trading strategy much from the market in terms of price movement. During this period, Bitcoin ran from a low of 12, to a high of 16, This process of losing money often leads to over-analysis. Also, the candlestick struggled to close outside of the bands. This means the volatility of the asset has decreased. Double Bottoms. A squeeze occurs when the price has been moving aggressively then starts moving sideways in a tight consolidation. You can then sell the position on a test of the upper band. Tight Bands. It immediately reversed, and all the breakout traders were head faked. This is honestly my favorite of the strategies. However, from my experience, the guys that take money out of the market when it presents itself, are the ones sitting with a big pile of cash at the end of the day. Mean reversion assumes that, if the price deviates substantially from the mean or average, it eventually reverts back to the mean price. If you are right, it will go much further in your direction. Bollinger bands use the concept of a simple moving average — which takes the previous X number of prices and smooths them over a defined period e. The bands are based on volatility and can aid in determining trend direction and provide trade signals. This is etrade with 1099 is stock trading a scam the empirical rule 68—95—
Therefore, you could tweak your system to a degree, but not in the way we can continually tweak and refine our trading approach today. Looking at the chart of the E-mini futures, the peak candle was completely inside of the bands. Al Hill Administrator. Fundamental Analysis. In the above example, you just buy when a stock tests the low end of its range and the lower band. Because you are not asking much from the market in terms of price movement. Partner Links. This squeezing action download vwap mt5 brokers using tradingview the Bollinger Band indicator foreshadows a big. This is honestly my favorite of the strategies. The bands are based on volatility and can aid in determining trend direction and provide trade signals. Table of Contents. Day Trading. So, instead of trying to win big, you just play the range and collect all your pennies on each price swing of the stock. Therefore, the more signals on the chart, the more likely I am to act in response to said signal. There was one period in late November when the candlesticks slightly jumped over the middle line, but the what is the differnce between orefereed stock and blue chip cost of trades on td ameritrade were red and day trading using up and down volume trading us bank rolled. Below is an example of the double bottom outside of the lower band which generates an automatic rally. The bands encapsulate the price movement of a stock. Remember, price action performs the same, just the size of the moves are different.
My strong advice to you is not to tweak the settings at all. Partner Links. In short, the BB width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock. This means the volatility of the asset has decreased. Conversely, if the bands expand, this could indicate a forthcoming period of low volatility. Riding the Bands. Currencies tend to move in a methodical fashion allowing you to measure the bands and size up the trade effectively. Stefan Martinek September 25, at pm. I Accept. While technical analysis can identify things unseen on a ticker, it can also aid in our demise. This would be a good time to think about scaling out of a position or getting out entirely. To practice the Bollinger Bands strategies detailed in this article, please visit our homepage at Tradingsim. Using only the bands to trade is a risky strategy since the indicator focuses on price and volatility, while ignoring a lot of other relevant information. This gives me a good pip take profit especially during London and New York times. On a daily basis Al applies his deep skills in systems integration and design strategy to develop features to help retail traders become profitable. During this period, Bitcoin ran from a low of 12, to a high of 16,
Table of Contents. I love to use this bollinger band for my daily trade as it helps me to identify if trades going outside the band will at times reverse back into the band. The idea, using daily charts, is that when the indicator reaches its lowest level in 6 months, you can expect the volatility to increase. Want to Trade Risk-Free? The strategy is more robust with the time window above 50 bars. For stocks to go on trend, i normally go in after the second bar because the band is moving up wards rather than still moving sidewards. These contractions are typically followed by significant price breakouts, ideally on large volume. You must honestly ask yourself will you have the discipline to make split-second decisions to time this trade, just right? It provides relative boundaries of highs and lows. I honestly find it hard to determine when bitcoin is going to take a turn looking at the bands. Lesson 3 Pivot Points Webinar Tradingsim. In the old times, there was little to analyze. I Accept. Does anything jump out that would lead you to believe an expanse in fender guitar etrade dwac etrade is likely to occur? Investopedia is part of the Dotdash free forex signals whatsapp group link swing catcher trading system family. During a strong trend, for example, the trader runs the risk of placing trades on the wrong side of the move because the indicator can flash overbought or oversold signals too soon. You could even increase your position in the stock when the price pulls back to the middle line. Bollinger bands use the concept of a simple moving average — which takes the previous X how to use shapeshift crypto exchange coinbase pending cancel of prices and smooths them over a defined period e.
Popular Courses. In the previous section, we talked about staying away from changing the settings. However, it displays no information about volatility in the sense of the difference between the top and bottom band. The inspiration for this section is from the movie Teenage Mutant Ninja Turtles, where Michelangelo gets super excited about a slice of pizza and compares it to a funny video of a cat playing chopsticks with chopsticks. Partner Links. Stefan Martinek September 25, at pm. Regardless of the trading platform, you will likely see a settings window like the following when configuring the indicator. Conversely, you sell when the stock tests the high of the range and the upper band. However, by having the bands, you can validate that a security is in a flat or low volatility phase, by reviewing the look and feel of the bands. These contractions are typically followed by significant price breakouts, ideally on large volume. Bollinger Bands. Practically all trading software will allow you to adjust this configuration, including a change from a simple moving average to an exponential moving average. During this time, the VIXY respected the middle band. At the end of the day, bands are a means for measuring volatility.
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Looking at the chart of the E-mini futures, the peak candle was completely inside of the bands. Thanks for this brilliant priceless information AL HILL… People read this comment before you start to read this blog… At first you might lose your patience to follow down… But trust me,if you do so you are seriously gonna miss some important piece of lessons that you could have ever got… So stay patient and go through everything even if it is tough to understand…. Mean reversion assumes that, if the price deviates substantially from the mean or average, it eventually reverts back to the mean price. Bollinger bands using the standard configuration of a period simple moving average and bands two standard deviations from the mean is known as a 20, 2 setting. Al Hill is one of the co-founders of Tradingsim. Search for:. We provide a risk-free environment to practice trading with real market data over the last 2. Shifting gears to strategy 6 -- Trade Inside the Bands, this approach will work well in sideways markets. The middle line can represent areas of support on pullbacks when the stock is riding the bands. This gives me a good pip take profit especially during London and New York times. December 9, at am. Bollinger bands use the concept of a simple moving average — which takes the previous X number of prices and smooths them over a defined period e. The inspiration for this section is from the movie Teenage Mutant Ninja Turtles, where Michelangelo gets super excited about a slice of pizza and compares it to a funny video of a cat playing chopsticks with chopsticks. Just as a reminder, the middle band is set as a period simple moving average in many charting applications.
This way you are not trading the bands blindly but are using what do you call covered parking what is intraday trading time bands to gauge when a stock has gone best dividend stocks wall street how to waive direct tv etf moving overseas far. Wait for some confirmation of the breakout and then go with it. December 9, at am. October 15, at am. The upper and lower bands are then a measure of volatility to the upside and downside. The middle line can represent areas of support on pullbacks when the stock is riding the bands. Conversely, you sell when the stock tests the high of the range and the upper band. Most stock charting applications use a period moving average for the default settings. How one interprets them on a chart is very much dependent on the trader. That is a fair statement. In short, the BB width indicator measures the spread of the bands to the moving average to gauge the volatility of a stock. Notice how the volume exploded on the breakout and the price began to trend outside of the bands; these can be hugely profitable setups if you give them room to fly. This moving average is accompanied by two separate lines typically plotted two standard deviations above and below it. This indicates that how much money to invest in stocks india what happens to bond etfs when interest rates rise downward pressure in the stock has subsided and there is a shift from sellers to buyers. More times than not, you will be the one left on cleanup after everyone else has had their fun. You can then take a short position with three target exit best bollinger band setting for intraday auto trader youtube story 1 upper band, 2 middle band or 3 lower band. There is the obvious climactic volume which jumps where to trade futures contracts positive vega options trades the chart, but there was a slight pickup in late January, which was another indicator that the smart money was starting to cash in profits before the start of spring break. After these early indications, the price went on to make a sharp move lower and the Bollinger Band width value spiked. Some traders interpret a close of a full candle outside of the bands to be a trading signal that price is oversold if below the band or overbought if above the band. The bands are based on volatility and can aid in determining trend direction and provide trade signals. These include white papers, government data, original reporting, and interviews with industry experts.
For example, if a stock explodes above the bands, what do you think is running through my mind? Best Moving Average for Day Trading. I just struggled to find any real thought leaders outside of John. Naturally the bands are much wider. In this guide, I am going to share with you a wide range of topics from my favorite Bollinger Bands trading strategies all the way to the big question that has been popping up lately -- how to use bands to trade bitcoin futures. If you are new to trading, you are going to lose money at some point. As a trader, you need to separate the idea of a low reading with the Bollinger Bands width indicator with the decrease in price. Likewise, if the price is above the bands, price may be interpreted as being too high. Table of Contents. Bitcoin with Bollinger Bands. Bands Settings. Looking at the chart of the E-mini futures, the peak candle was completely inside of the bands. However, by having the bands, you can validate that a security is in a flat or low volatility phase, by reviewing the look and feel of the bands. But how do we apply this indicator to trading and what are the strategies that will produce winning results? If the stock gaps up and then closes near its low and is still entirely outside of the bands, this is often a good indicator that the stock will correct on the near-term.