THE BOLLINGER BAND STRATEGY

CRUZEBOW PREMIUM
Everyone Boom! The strategy that made me my first $5000 and I’m gonna
actually show you what I did from day one when started learning. We all had our
up and downs you know we made money we lost money, but when I found
consistency that’s when I really started to learn how to make money and it started
with price action.

So before I get into the actual strategy, I just want to let you know that price action
is EVERYTHING! Ok for the strategy what you’re going to need is two tools. One of
them is MOVING AVERAGE and one of them is BOLLINGER BAND.

MA - Moving average is 9 period MOVING AVERAGE (Not Exponential moving avg

[EMA] ok?). Which means it is giving you the measurement of the previous 9
candles closing price.

Figure a Moving Average - 9 MA

Bollinger Band – Bollinger band has 3 lines on it has the TOP, the BOTTOM and the
middle line which I made into dots (white dots). This comes in a standard setting
and it’s just a 20 close and period you are looking for. Bollinger band does is it kind
of acts like a moving support and resistance.

Figure b Bollinger Band

Okay guys, the middle line is a moving average. What it does is, it gives you
moving average for that 20 period. Keep in mind, now a moving average is like a
magnet. The price always wants to try to come back to average. So, when price is
below average you are in a downtrend and price will try to come back to retest. If
you are above the moving average, then price is going to be in an uptrend, and
you are going to try to come back and retest

Figure c when price is below white dots average, price will try to come back to retest.
Figure d When price is above white dots average, price will try to come back and retest

This middle dotted moving average acts like a magnet. Because price always
tries to be at average if price goes too high its going to come back down, if price
goes too low then it’s going to come back up. This is the interesting part guys.

The upper and the lower bands act like the area of the potential high and
potential low. To let you know that the top area acts like where the price is kind of
trying to get up to and the bottom acts like where the price is trying to get down
to. So, this Bollinger band moves as price moves.
Okay for this strategy is very simple. I put the 9MA moving average on the chart.
Understand carefully,

Look there’s areas where the Bollinger band comes together, and you can see
things are really close together and that’s when you are going to move sideways.

Figure e Upper band and lower band closed together

but when you see that the Bollinger band kind of opens up and you see it kind of
going in different directions from each other you see bigger moves. That doesn’t
mean up or down IT JUST MEANS VOLUME. It just means that there’s volatility,
speed and movement coming into the market.

Figure f Bollinger band opens up and going in different directions from each other and, you see the bigger moves.

The strategy is very simple: Anytime you see where the band kind of came
together and then it started to go apart. Then you see upper band started to
move one way and lower band started to move different way.
Usually, they would be trying to move together but they start to move apart when
the bottom and the top start moving different directions you know you have
movement happening in the market.

See this example. Here we see them start to move apart and you see that the
price of course starts to drop now. Here’s the next thing you need to know, the 9
moving average and the middle Bollinger band essentially is going to be like a
moving average crossover.

Figure g Here we see them start to move apart and price starts to drop.
See another 2 examples.

Figure h Figure g Here we see them start to move apart and price drop as well as moving average crossover

Figure i Here we see them start to move apart and price going up as well as moving average crossover
 HERE IS THE STRATEGY
Okay guys, here is the strategy. It’s actually super simple. Read carefully. I’m using
30 mins timeframe which is working well for me.

Wait till the Bollinger band comes out. Like this example below. Then you see how
the candle start to kind of pop out. You see how that happens.

Figure j Wait till the candle pops out from the band

When you see price outside of the band, you know you’re starting to be over
extended. When you see price inside the band then you know that you still have
potential room to go. But it’s moving outside of the band, you are coming to a
place where you’re going to see a turnaround at some point.
For an example, you see the price moves, price moves and now we are out of the
band and this big bearish candle pushes us outside of our area.

Figure k Price moves and finally pops out of the band

So now middle dotted line acts as a magnet. Price is going to try to get back to
average. Here is what we are gonna do. ;-)

As soon as we see price outside of the Bollinger band, we are going to wait until
we see a candle close back inside the Bollinger band. See the example.

Figure l Wait until we see a candle close back inside the Bollinger band.
At that point, you see a candle close back inside the band you can buy (LONG).
See the example.

Figure m When you see a candle close back inside the band you can buy

See more examples here and try yourself as well.

Figure n When you see a candle close back inside the band you can buy

That means you are gonna be trading pullbacks. At that point, all you have to do
is take that price back to the 9 moving average (9MA – blue line). That’s it!
THATSSSS ITTTT!!! Just simple.
If you see price close inside the moving average, you’re going to take it back to
the 9 moving average the first level of take profit and 20 MA will be your second
level of take profit. See the example.

Figure o Take profit 1 - 9MA

Figure p Take profit 2 - 20MA (white dotted line)

Figure q Take profit 3 - Upper band

There we go. Hope you got a good idea about basics of Bollinger band. This
method made me the 1st $5000 of my trading career. Pretty interesting.

Okay, now you all see that movement. We could have very easily taken this to 9MA
to the take profit 1. Then take profit 2 and take profit 3 being the opposite band.

How do we know if it’s going to continue towards TP 2, 3 after hit TP 1?

It’s actually pretty easy. TP 1 is super easy. I don’t want to guarantee but it’s nearly
a guarantee. Once you see this come back in, you’re going back to take profit 2
which would be the next level. It’s not guarantee but it’s still pretty good
probability that you can make it back to take profit 3.

Here are more examples to understand more. You can use MACD, RSI, and
Stochastic RSI to get more confirmations.
Figure r #XRP SELL {SHORT} - TP 1, 2 DONE

Figure s #XRP SELL {SHORT} - TP 1, 2 DONE

Figure t #LTC SELL {SHORT} - TP 1, 2 DONE

Figure u #LTC BUY {LONG} - TP 1, 2, 3 DONE

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