Bollinger bands

Have you heard of Bollinger bands?

It’s basically a standard deviation around a Moving avg, that daily traders use to time the market. Well everybody says don’t time the market, which is great — but what if you knew some cheat codes around when to buy or when not to buy?Ex- If it’s due for a draw down.

Based on what I have seen — a Bollinger band of 2–2.5% standard deviation around 20day SMA Works the best.

The center line is the 20day SMA. The top line is +2% standard deviation on SMA, while the bottom is -2% std deviation

A few recent examples

If the stock crosses that line, it’s due for a pull down. (Top arrows)

As long as it’s within the line, it’s will continue to go in the upward direction. Don’t buy at those times, but if you already have watch out for the timings to sell. Wait for the right entry/exit points. There lies the alpha!