Bollinger Bands: A powerful tool to break through the Sideways dilemma, a key signal before the market turning point.

Sideways market conditions are always frustrating: prices drop after buying and rise after selling. However, the Bollinger Bands can predict market turning points in advance - they act like a rubber band, brewing significant volatility when they narrow and providing clear action signals when they widen!

When the Bollinger Bands narrow to almost sticking together, it means a significant change is imminent.
When the price is moving sideways, the upper, middle, and lower bands of the Bollinger Bands converge, indicating that both bulls and bears are locked in a stalemate, and a winner is about to be decided. At this time, using leverage recklessly carries great risk; short-term trading is also inadvisable, as one may not even cover the transaction fees. It is advisable to wait for a breakout in either direction before taking action— the greater the breakout, the stronger the momentum of the subsequent market (in 2023, Bitcoin moved sideways for a month, and after the Bollinger Bands narrowed, it directly surged by 30%, causing many to regret missing the opportunity).

When the Bollinger Bands widen, you need to determine whether to go long or short based on the position.
After the high position opens and expands, it begins to contract, which is a sell signal (for example, if the price of the coin rises three times, and the Bollinger Bands reach their maximum opening and then suddenly narrow, the probability of subsequent decline is very high);
The low-level opening expands, and the coin price rises from the middle track, which is a buy signal (if the coin price drops by 50%, and the Bollinger Bands narrow before suddenly opening, with the middle track turning upwards, the probability of winning when buying at this time is relatively high).

It is important to note that the Bollinger Bands have a lagging nature (they change only after the price movement), so do not expect to use them to predict reversals; their main function is to determine whether a trend can continue. #BTC#