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What are the recommended bollinger band settings for day trading popular cryptocurrencies?

avatarMichael TDec 26, 2021 · 3 years ago3 answers

I'm interested in day trading popular cryptocurrencies and I've heard about using Bollinger Bands as a technical analysis tool. Can you provide me with the recommended Bollinger Band settings for day trading cryptocurrencies? I want to optimize my trading strategy and make informed decisions based on these indicators.

What are the recommended bollinger band settings for day trading popular cryptocurrencies?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    As an expert in day trading cryptocurrencies, I recommend using the following Bollinger Band settings for optimal results: 20-day simple moving average (SMA) as the middle band, with two standard deviations (SD) for the upper and lower bands. This setting provides a good balance between sensitivity and reliability, allowing you to identify potential price reversals and volatility. Remember to adjust the settings based on the specific cryptocurrency you're trading, as different coins may exhibit different levels of volatility.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to day trading popular cryptocurrencies, Bollinger Bands can be a valuable tool. While there's no one-size-fits-all setting, a commonly used configuration is a 20-day simple moving average (SMA) for the middle band, with two standard deviations (SD) for the upper and lower bands. However, it's important to note that these settings are not set in stone and should be adjusted based on the specific cryptocurrency you're trading and your trading style. Experiment with different settings and find what works best for you.
  • avatarDec 26, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, suggests using a 20-day simple moving average (SMA) as the middle band, with two standard deviations (SD) for the upper and lower bands when day trading popular cryptocurrencies. This configuration provides a good balance between sensitivity and reliability, allowing traders to identify potential price reversals and volatility. However, it's important to note that individual trading preferences may vary, and it's always recommended to backtest and adjust the settings based on your own trading strategy and risk tolerance.