🚨99% of people use the Bollinger Bands (BOLL) incorrectly

You think it's a buy and sell point indicator,

but the ones who truly make money only use it to judge one thing:

👉 What stage is the market currently in?

This graphic thoroughly explains the "underlying logic" of Bollinger Bands👇

🧵 (recommended to bookmark)

① Three lines moving up / down simultaneously

📈📉 This indicates a trend, not a fluctuation

Three lines moving up → Bullish trend

👉 Buy on the middle line's pullback, not chasing highs

Three lines moving down → Bearish trend

👉 Sell on the middle line's rebound, not trying to catch a bottom

❗ In trending markets:

The lower line is not a buying point, and the upper line is not a selling point

② Three lines parallel

🔁 This indicates a ranging market

No trend, only rhythm

Buy on the lower line, sell on the upper line

Do not place breakout orders, do not discuss trends

❗ Using trend thinking in a ranging market,

You will definitely face repeated stop losses

③ Three lines significantly contracting

⏳ This is the eve of a trend change (most important)

Volatility is extremely low

Both bulls and bears are "holding back"

A major market movement often starts from here

❗ At this time, the only correct action is:

Wait for direction, do not place bets

④ Bollinger Bands suddenly opening

🚀 The market enters an acceleration phase

Opening upwards → Bullish explosion

Opening downwards → Bearish sell-off

Usually accompanied by: increased volume + extreme emotions

❗ This is not the phase to catch bottoms or tops,

but rather the phase to hold positions in the direction of the trend

🔑 In one sentence, the essence of Bollinger Bands

Bollinger Bands do not tell you buy and sell points,

but rather tell you:

Is it suitable for trading now?

If the direction is right,

what indicators to use are just details.

📌 Bookmark this graphic

📌 Forward it to friends who are still "misusing indicators"

📌 You will save at least 3 years of detours