As we know there are many indicators that are used to generate the buy and sell calls, but no indicator is 100 percent correct and there are possibilities of loss with every indicator. It is important to note the settings, for example, the period of moving averages. The Bollinger band is an important indicator that gives best results in the sideways or range bound market. Here, with the breakout from the bands, you can generate the buy and sell signals. Several analysts are using the Bollinger band strategy to generate the accurate stock market tips. Bollinger bands are also combined and used with other indicators to confirm the trend reversals. Some use Bollinger bands with RSI to confirm the anticipated price movements.
It can be traded differently in the trending market and sideways market. The upward facing Bollinger band shows an uptrend, in the trending market. In the same way, in downward inclined Bollinger bands, the trend is confirmed to be a downtrend. There is no uptrend or downtrend in the sideways market and in this case, the Bollinger band can be used to generate the buy and sell signals on the breakouts. When the breakout is obtained from the lower band a buy signal is anticipated. And in the same manner, if the breakout is obtained from the top band a sell signal is initiated.
One of the important things to keep in mind is that how efficient the trading strategy is and how well the trader applies the strategy. No strategy is hundred percent correct. Every trading strategy should be followed along with the principles of wealth management and Risk Management. The principles of these two factors are the two most important concept used extensively in the share market trading. It is suggested to the newbie traders to take the help of some reputed advisory firms for their support and advice. Out of few, Money Classic Research is one such reputed and esteemed advisory firm which provides accurate stock market tips in the form of buy and sells signals. Such advisory firms have experienced technical analysts who on the basis of the in-depth research provide accurate stock market-related calls.