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--- forex:indicators:bollinger_bands [2022/12/10 11:21] – peter
+++ forex:indicators:bollinger_bands [2022/12/10 12:06] (current) – peter
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   * It means that prices make higher lows and higher highs as there is control from buyers.
+  * Bollinger Bands can help us to identify this uptrend as we can find that prices move between Moving Average and Higher Band.
   * Buy when prices crossover above Moving Average and the target will be the Upper Band.
     * Prices > MA = Buy, Upper Band = Target
+----
+==== During Downtrend ====
+During a Downtrend, prices move most of the time below their mean (Moving Average).
+  * It means that prices make lower highs and lower lows as Sellers control the market and prices move down.
+  * Bollinger Bands can help us to identify this downtrend as we can find that prices move between Moving Average and Lower Band.
+  * Sell when prices crossover below Moving Average and the target will be the Lower Band.
+    * Prices < MA = Sell, Lower Band = Target
+----
+==== During Sideways ====
+First, we need to understand how prices move during sideways as we can find that sideways are any movement except uptrend and downtrend.
+Sideways show a balance between buyers and sellers as there is no full control on the market from one party of them.
+   * A sideways movement is any movement except uptrend and downtrend.
+The strategy during sideways is to buy on the Lower Band and the target will the Upper Band, or sell on the Upper Band and the target will be the Lower Band.
+  * Prices on Lower Band = Buy, Upper Band = Target
+  * Prices on Upper Band = Sell, Lower Band = Target
+  * Buy on the lower band and take profit on the upper band.
+  * Sell on the upper band and take profit on the lower band.
+----
+==== Trading Logic ====
+=== Strategy 1 - Uptrend Bollinger Band Strategy ===
+Prices > MA = Buy, Upper Band = Take Target, Or = No Signal
+During an uptrend, every Tick Price and Bollinger Band will be checked.
+UPTREND
+  Price > MA
+BUY
+  * Price > MA
+CLOSE
+  * Price >= Upper Band
+----
+=== Strategy 2 - Downtrend Bollinger Band Strategy ===
+Prices < MA = Short, Lower Band = Target
+During an uptrend, every Tick Price and Bollinger Band will be checked.
+DOWNTREND
+  Price < MA
+SELL
+  * Price < MA
+CLOSE
+  * Price <= Lower Band
+----
+=== Strategy 3 - Sideways Bollinger Band Strategy ===
+Prices on Lower Band = Buy, Upper Band = Target
+Prices on Upper Band = Sell, Lower Band = Target
+During sideways, every Tick Price and Bollinger Band will be checked.
+SIDEWAYS
+  * Price > Lower Band && Price < Higher Band
+BUY
+  * Price = Lower Band
+SELL
+  * Price = Upper Band
+CLOSE
+  * (Buys)  Price >= Upper Band
+  * (Sells) Price <= Lower Band