So today guys we're going to be talking about the Bollinger Bands this is an indicator which a lot of people like to use and today I'll be showing you how to use it and how not to use it and how to use it in conjunction with other indicators to get the best outcomePossible now that all sounds good please leave a like on the video and subscribe to the channel for more and please go back and re-watch or watch for the first time any of the other videos I've done in this series because they are all very important in piecing together yourTrading Journey if you're just starting out or you're maybe intermediate definitely work on the trend following videos Etc because those ones are really really important so we've got those all in the playlist on the channel check them out if you haven't already so let's start off with what is a Bollinger bandSo a Bollinger band is a technical analysis tool defined by a set of trend lines plotted two standard deviations positively and negatively away from a simple moving average of a cryptocurrency's price this will kind of show you where oversold and overbought levels are now you probably know ifWe've done the video on the RSI you have overbought levels and oversold levels where price is too extended in either direction and this is a very similar concept how it's a lot more visual on the charts rather than a separate indicator I'll show you what I mean inJust a second now there are three lines like I said that compose it you have the 20-day simple moving average in the middle which will be that Center Line and then you have other lines which you've got the two standard deviations plus and minus of that 20 moving averageSo when the price touches that upper band it is looking to go back down and when you have price on the lower band is looking to go back up so let me show you what it looks like so when you go on to trading view on your chart you can headOn over to indicators type in Bollinger Bands and you'll find it right here you can click that and this is what it should give you something that looks like this now I'm on the daily chart for Bitcoin right now and as you guys know daily charts are a lot more uh you knowEasy to use than the four hour the one hour 15 minute however you're gonna get a lot less trading signals per year or per month and let's just show you kind of what I mean by how this indicator works so you know we said when it hitsThe top of the range it usually comes back down and when we hit the bottom of the range we usually come back up and you can see in a trend in a ranging Market this works really well because you have it goes to the top comes backDown goes to the bottom goes back up top top top you can see it works very well however you then have times where you have intense trends like this where price continues to move down and slopes the Bollinger band down leaving you a bit lackluster when it comes to tryingTo find a trend because there is no entry here and there is actually a lot of false entries here if you are looking to just buy every time it hits the bottom of the band so just off the bat just so you guys know this indicator byItself in the way that it's kind of taught to be used is not great if you're just looking to buy when it hits the bottom band and so when it hits the top band you're basically just guessing it's just as good as guessing and I really do not recommend doing that what IRecommend is using it in conjunction with either another indicator or Candlestick patterns now if you go back and watch my video on Candlestick patterns is one of my first ones I did in this series you can get some really good valuable ones there but my favoriteOne is the engulfing pattern and this is one which I find works really well with the Bollinger band now what I mean by that is when you have a bearish or bullish engulfing candle at the top or bottom of a Bollinger band that is when you would take the entry for the tradeAnd in terms of take profit for a trade if you are just using the Bollinger Bands as a strategy then you could use you could take profit at the center line there because not always does it come back to the top because if we are in more of a trending environment you canSee we do have the reversal but it will stop at that middle line so it's good to capture those small profits like that let me show you what I mean by that engulfing strategy right for example here we have that bet this bearish engulfing passing we have the smallGreen candle this large red candle and this is a bearish engulfing pattern now because we've already hit the center line there's two ways you can go about it you can either say because we've hit the center line we don't want to take the trade and that's fine or you can sayBecause we've already hit the center line and we've got the path Candlestick pattern then we can aim for the bottom line and in this case what you would do is you maybe would want to set your cell either at the end or the close of thisCandle set your stop loss below the high and then set your take profit at the bottom of the Bollinger band however you can see that does not provide us with a good wrist reward ratio we always want to aim for at least one to one and itPreferably one to two if we can but what I would do is actually put it up here because this is actually where the key level is is where the previous candle is and that's a nice little kind of hack there guys you can you can use is when you're using bullish engulfing orBearish engulfing patterns that previous candle before the major large one actually kind of acts as that support and resistance Zone known as the supply or demand Zone and you can then actually utilize that in your trading so we can have that as our Zone and then thisBecomes pretty much a 2.6 wrist reward ratio trade which is absolutely fantastic so that could be one example there and as you can see we really do avoid I mean for the most part obviously there are going to be tradesy Loops that just happens to trading sometimes butYou can see we avoid all of this because we don't have any bullish engulfings now this would be a fake signal I believe I mean it depends how you'd want to use it if you're just using this as the the signal then that wouldn't be one howeverIf you're using this there is a bullish engulfing here which doesn't play out we do have a here you can maybe call this a better a bearish engulfing because you know this candle does come lower than this and the bodies are bigger but there's so many different definitions inTrading whether you want the engulfing candles to completely engulf the wick and the body of the previous one or just the bodies but let's say this is one then again you could set one at the previous uh candle there stop loss above the high and then your take profit wouldBe down at this level here of the moving average at the time of when the trade is set and that would be a nice 1.66 risk to reward ratio now guys you can also trade based on that SMA line however I don't recommend that I think that's you know you're already gettingEnough trades from the extreme levels I would leave that there but you can see here again we have a nice potential trade up here where we set the stop loss at the top and then we have a take profit down here and then we have uh unfortunately we don't get an entry hereBecause that's not a bullish engulfing we could call that a bullish engulfing and again have a nice trade play out there you've got tons of opportunities here guys but you just know if you pair this with a Candlestick patterns rather than just having them by itself you'reGoing to get a lot more wins than you would do before now another thing to mention with Bollinger Bands is actually how they're used with volume now volatility is something really important in cryptocurrency trading and the way that the Bollinger band kind of shows you that or shows you how vigorous theTrend is is based on how wide they are so you can see if you have these really wide bands you're probably in you know a period of good volatility especially if we have these really extreme sloping Bands then that's an extreme Trend however you can see how they constrictLike this sometimes and they they curl up together that is a period of low volatility which is actually when you can then think about using it for a breakout trade because if we have gone into a period of low volatility and then we get a break to the downside thatCould be a great short trade opportunity for example or again same if you see it in another area but obviously with cryptocurrency it's very rare you do get that low volatility as it's very volatile market and there's rare times you do get that for an extended periodOf time then that is something to note as well now another thing you could do is pair it with the RSI that we talked about so again you can go and type in RSI relative strength index and the way this works I just like to take the umThe M8 offer but you have the overbought and oversold levels on this as well and you can just wait for them to be in Confluence with each other so it's when you get a overbought signal with the top level of the Bollinger band you canExpect price to go down even more so and vice versa now you're not going to get a lot of these signals on the daily chart because especially with cryptocurrency it's very rarely been either one you probably have to wait a good couple of months or a few months to find just oneSignal however if you go to the four hour or the one hour you'll find a lot more frequent signals they won't be as accurate but again you can see here we are oversold on both we see a bearish engulfing cattle as well so that's all three checks and you can see what aFantastic trade that would have been I hope that kind of helps to frame how you should be using Bollinger Bands and how you shouldn't be using them you can utilize them in conjunction with any indicator pretty much but RSI is always a good one and really having thatCandlestick filter in there really helps as well and you can see really from this tutorial hopefully that uh it's not just about having that one key trading thing it's about having multiple mixed together anyway if you did enjoy this video guys please leave a like if youFound it useful leave a comment down below subscribe to the channel for more and make sure you go back and watch the rest of the playlist and watch the rest of the playlist if there are more videos at this time anyway guys thanks for watching and I'll catch you in the nextOne bye Thank you

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Don't try and predict the bottom wait for the market to show you which direction it wants to move in and yes you might miss the initial move but you can get massively involved in the re-test if bitcoin was here and people were saying where's the top goingTo be where's the top going to be and you know the price kept trucking on people still saying where's the top where's it up i'm not thinking where's the top i'm thinking where does the market show me it's going to go down when do i want to shortOkay where's the top where's the top oh oh is it here who knows once i see this candle here i'm thinking okay the market's showing me it wants to go down let's go down with it and then that's when you know the market starts to plummet