How to double two Bollinger Bands (20,2) and Bollinger Bands (20,1), see the article "Effective trend-trading method with Bollinger Bands "

Returning to the double-line method of Bollinger Bands (20,2) and Bollinger Bands (20,1), the most important advantage of this method is consistency in trading signals, that is, there are signals. Trading doesn't need to think, think, or think at all.

Specifically, to enter a command, you just need to wait for a candle to close outside the upper / lower boundary of BB1 and the previous two candles still closed inside. Simply that, even with a 7-year-old child, you only understand it.

Like other methods, this method will sometimes make you lose money. Losing is an inevitable part of life. Don't be afraid of it. Our job is to try to keep it as small as possible. So how to achieve that task in this method. Please continue to research the following issues.


The BBs mid-range often acts as a (flexible) moving resistance/support allowing us to find the optimal entry point. If the price is below the middle boundary, in an uptrend, it is likely that your BUY command will be hit stop loss because the increase is not clear, not to say is weak (the price is below the average price of 20 days). And in contrast to the SELL command.

Give a picture to easily visualize what is about to say:

Recalling the rule of the two BBs method, we will enter an order at kilometer 3 as it closes above the boundary on BB1. Of course, kilometer 3 is already above the mid-range, so we don't have to worry about the price being below the mid-range and being hit stop.

However, there is one thing we need to keep in mind here. That is the position of PK 1 and 2 with respect to the middle boundary. Experience has shown that, if kilometers 1 and 2 close above the midline, this is proof of the increase more clearly and therefore the winning rate will be higher.

Obviously, in the picture above, kilometers 1 and 2 are completely above the middle border, and you have seen how the price increases.

Likewise, on one more note, the closer the PK 1 and 2 kill close to the upper bound of BB1, the stronger the force increases. In the previous post, I only talked a lot about candle 3, but in this post, to emphasize that: THE PRACTICE OF SUCCESS DOES DEPEND ON THE MOVEMENT AND LOCATION OF PLANT NO.1 AND PLANT 2.

Occasionally, candles 1 and 2 are a red candle that closes close to the middle boundary, or 1 candle closes above, and one candle closes below the middle border. Then PK increased sharply and closed above BB1. Of course, we also have 1 entry point, but this is not good. The likely high price will not go as strong. Because the 3 candles of this method do not support each other, not confirming a sufficient upside force gives the trader confidence that the price will continue to move up. Buyers at this time do not fully control the market and of course, there is a high probability that the sellers will return. How the outcome is, you also know it.

I post the image above for easy viewing, not a new one:

Based on what I said above, we have 2 setups, the first set consists of three beautiful bullish candles in accordance with the set standards, I call this one set up with GOOD orders, the second set has kilometers. 1 is close to the middle boundary button, but still eligible to enter orders, I call this the setup set to enter TYPICAL orders (ie the winning ratio is not as high as the first set).

The second setup is also good, as you can see in the picture, nice increase, but just for so long, we should still analyze based on supply and demand and the reasonableness of price movements to make the right decision...


There's one more setup, I call the Bad setup. It should look like this:

Can you see, both candles 1 and 2 are bearish candles, and look at the way it closes, one is closed below, one is close to the middle, the 3rd candle suddenly soared. to the upper boundary. As you can see, the upside force also comes after the 3rd candle, but the buyers have absolutely no control over the market and after a few candles sellers come back overwhelmingly.

Therefore, do not just stare at candle number 3, candle 1, and 2 that matter.

Let you continue with two more examples of setup on the command fails. You can't always enter the order, guys:

In the first example, candle 1 and 2 are the same bullish candlestick, even a nice bull, it closes above the middle boundary, candle 3 also soars across the border above it. But then how? The reason is that kilometers 1 and 2 close too close to the middle, especially PK 1.

In the second example is similar, you do your own evaluation.

Here is a good setup to command:

Candle 1 and 2 stick their tails up towards the middle but close below the middle border, and PK 3 crosses the lower boundary of BB1. Just enter the order, do not hesitate anymore!

Here are two examples where the setup did not enter the command well:

Why are these two setups not good? Please give your comments and then comment below to show that you have understood all the issues.

Continuing another setup, in your opinion is it good or not?

Have you seen the benefit of the midfield and the first two candles?

If you only read the previous article, you will definitely ignore these two factors and assume that there are too many errors in the method, too much noise. The really important thing appeared now.

In short for you to be clear. The method of nested Bollinger Bands requires two conditions NEED and ENABLE to find an entry point with a high success rate:

REQUIREMENTS: PK 3 should close above / below of BB1, kilometers 1, 2 must close above middle boundary BBs.

ENERGY: PK 1,2 is the same color as 3. The kilometer 1,2 is as far away from the center as possible.