๐ฝ๐ค๐ก๐ก๐๐ฃ๐๐๐ง ๐ฝ๐๐ฃ๐ ๐ฟ๐ค๐ฌ๐ฃ๐ฉ๐ง๐๐ฃ๐๐จ ๐๐ง๐๐๐๐ฃ๐
Bollinger Bands can determine how strongly an asset is falling and when it is potentially reversing to an upside trend. In a strong downtrend, the price will run along the lower band, showing that selling activity remains strong. But if the price fails to touch or move along the lower bar, the downtrend may lose momentum.
When there are price pullbacks (highs), and the price stays below the middle band and then moves back to the lower band, it indicates a lot of downtrend strength. In a downtrend, prices should not break above the upper band since this would suggest that the trend may be reversing or slowing.
Many traders avoid trading during downtrends other than looking for an opportunity to buy when the trend changes. The downtrend can last for short or long durations โ minutes, hours, weeks, days, months, or even years.
If the lower bands show a steady downtrend, traders must be cautious to avoid entering into long trades that will prove unprofitable.
This is how to use Bollinger bands to trade in the downtrend market.
