Advanced Courses - Course 3

Welcome to Crypto Crew University!

Crypto Trading Made Simple.

Risk Disclaimer
*Trading cryptocurrency is very risky and is not suitable for all investors. It’s extremely likely you will sustain a loss of some, or all of your initial
investment and therefore you should only invest what you’re willing to lose. Everything taught in Crypto Crew University Courses is for educational
purposes only and should not be used as financial advice. Always speak with a professional financial planner before making any financial decisions.
Steve and Crypto Crew University are not held responsible for any financial losses that occur in your account.*

Overview of CCU Advanced Courses: Overall Course Goals:

1. We’re going to cover the Fib, Bollinger Bands, Elliott Wave 1. Get comfortable then confident with the
Theory, Key Chart patterns, MACD, Stochastic RSI, Trends most important Indicators on Earth
and overall which ones are the most accurate as well as 2. Understand how to use each indicator as
Steve’s Daily Chart Routine well as a strategy for each specific indicator
2. We’re going to discuss strategies for Day Traders, Swing
3. Understand Day Trading, Swing Trading,
Traders, Long-Term Investors and the Hybrid Strategy –
Long Term Investing and the Hybrid
all using each of the above
Strategy – all using these popular indicators
3. Finally, we’ll add one distinct and highly important
4. Further development of the Hybrid Strategy
piece to our strategy that we’ve been building since the
Beginner Course – adding a key missing piece

Course 3 – Overview
1. What are Bollinger Bands
2. How to use Bollinger Bands
3. What other indicators to pair with Bollinger Bands
4. When to use Bollinger Bands
5. How accurate are Bollinger Bands

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1. What are Bollinger Bands?

Developed by John Bollinger, Bollinger Bands are volatility bands placed above and below a moving average.

Bollinger Bands consist of a middle band with two outer bands. The middle band is a simple moving average
that is usually set at 20 periods. The outer bands are usually set 2 standard deviations above and below the
middle band. Standard Deviation is a mathematical equation used in all areas of life, math and charts.

KEY Tip: 95% of price action happens inside the bands.

The bands automatically widen when volatility increases and narrow when volatility decreases.

The indicator forms a channel around the price movements. The channels are based on standard deviations
and a moving average.

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Three Key Benefits to Bollinger bands

1. Can help you establish a trend’s direction
2. Spot potential reversals
3. Monitor volatility

Bollinger bands help assess how strongly a crypto is rising (uptrend). Also when it is potentially losing
strength or reversing. This information can then be used to help make trading decisions.

1 a. When in an UPTREND

• Even during an uptrend prices drop for periods of time, known as pullbacks. During an uptrend, if
the price is moving strongly then pullback lows will typically occur near or above the moving average
(middle) line. The pullback doesn’t have to stall out near the middle line, but it does show strength if it
wants to continue.

• When the price is in a strong uptrend it shouldn’t touch the lower band. If it does that’s a warning sign
of a reversal.

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1 b. When in a DOWNTREND

When the price is in a strong downtrend it will typically touch or run along the lower band during impulse
waves lower. When it fails to do that it shows the downtrend may be losing momentum. Impulse waves are
down and corrective waves are up.

• Even during a downtrend prices may rally for periods of time, called pullbacks. During a downtrend,
if the price is moving strongly lower then pullback highs will typically occur near or below the moving
average (middle) line. The pullback doesn’t have to stall out near the middle line, but it does show
selling strength if it does.

• When the price is in a strong downtrend it shouldn’t touch the upper band. If it does that’s a warning
sign of a reversal.

1 c. Trend Reversals
• If the price is in an uptrend, and continually hitting the upper band (and not the lower band), when the
price hits the lower band it could signal that a reversal has commenced. If the price rallies again, it likely
won’t be able to reach the upper band or the recent price high.

• If the price is in a downtrend and continually hitting the lower band (and not the upper band), when the
price hits the upper band it could signal that a reversal has commenced. If the price declines again, it
likely won’t be able to reach the lower band or the recent price low.

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1 d. Bollinger Bands Calculation:

Upper Band = Middle band + 2 standard deviations.

Middle Band = 20-period moving average (most charting packages use the simple moving average).

Lower Band = Middle band - 2 standard deviations.

Trend-trading with the Bollinger Bands

Bollinger Bands do not lag (as much) because they always change automatically with the price.

2. How To Use Bollinger Bands?

We can use the Bollinger Bands to analyze the strength of trends and get a lot of important information this
way.

• During strong trends, price stays close to the outer band

• The upper band shows a level that is statistically high or expensive
• The lower band shows a level that is statistically low or cheap
• The Bollinger bandwidth correlates to the volatility of the market.

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3- What other indicators pair with Bollinger Bands

*Stocastic RSI
*RSI

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4. When to use Bollinger Bands?

Day Traders –A day trader could trade off of 15-minute charts, DEMO

To Buy: 15 min chart

1. Through bottom band
2. Stochastic RSI at or below 25
3. RSI at or below 40

To Sell: 15 min chart

1. Through top band
2. Stochastic RSI at or above 80
3. RSI at or above 75

Study TIP: *Remember our rules for Stoch RSI from the previous course (the cross triggers the trade)*

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Swing Traders –A swing trader will typically use the 12 hour chart, like the below. See the trading rules
below the picture DEMO.

To Buy: 12 hr chart
1. Through bottom band
2. Stochastic RSI at or below 25
3. RSI at or below 40

To Sell: 12 hr chart
1. Through top band
2. Stochastic RSI at or above 80
3. RSI at or above 75

Study TIP: *Remember our rules for Stoch RSI from the previous course (the cross triggers the trade)*

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Long term Investors –An investor will focus typically on the monthly, however Bollinger Bands will not be
beneficial on the monthly. Therefore the long term will use the weekly in this case. DEMO.

To Buy: weekly chart

1. Through bottom band
2. Stochastic RSI at or below 25

To Sell: weekly chart

1. Through top band
2. Stochastic RSI at or above 80

Study TIP: *Remember our rules for Stoch RSI from the previous course (the cross triggers the trade)*

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Hybrid Traders: Will typically use the daily or weekly depending on how often they want to trade. Daily
chart and rules below.

To Buy: daily chart

1. Through bottom band
2. Stochastic RSI at or below 25

To Sell: daily chart

1. Through top band
2. Stochastic RSI at or above 80

Study TIP: *Remember our rules for Stoch RSI from the previous course (the cross triggers the trade)*

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5. How accurate are Bollinger Bands

Like all indicators, there are many false signals. For example, 95% of the chart falls inside the bands.
However, this buy or sell signal is not accurate every time. Thus, you need to pair it with another
indicator and it still could give false signals. The key to becoming a successful day trader, swing trader
or investor is to win more then you lose and hone in on a specific strategy and keep refining it over
and over and over again. Once you do that, I firmly believe you will become very successful!

Notes

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Quiz
1. What are Bollinger bands used for?
2. How many components to Bollinger bands and what are they used for?
3. What are the key things to watch in an uptrend and why?
4. What are the key things to watch during a downtrend and why?
5. How can you use Bollinger bands to spot a trend reversal?
6. What did you learn about the mouth of the Bollinger bands?
7. What is a squeeze or constriction? What does it mean?
8. How do you know if price is going up or down after the squeeze?
9. Why is it super important if price pokes through the top or goes through the
bottom of the Bollinger bands?

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HOMEWORK
1. By now you are fully confident which type of trader you are – if not you are not allowed to proceed to
the next course until you figure it out!
2. Make a big list of all vocab words thus far with definition
3. Study 3 different charts – look for the squeeze, look at expansion, what to do you see?
4. Find 3 examples of a squeeze followed by bullish expansion – what did you learn?
5. Make 3 fake buys and sells based on what you learned today – how would you have done? Would it have
been better or worse in the other time frames?

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5. __________________________________________________________________________________

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