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Can Bollinger Bands Predict Tops/Bottoms?
I've been experimenting with Bollinger Bands for entry signals. While they're great for identifying overbought/oversold conditions, I find they're less reliable for predicting exact tops or bottoms without confluence from other indicators like RSI or price action divergences. What are your experiences?
2 comments · 4 points
I'm with you on this. Bollinger Bands alone can be a bit of a head-fake for precise turning points. They're definitely better for confirming existing trends or identifying areas of potential exhaustion, rather than pinpointing exact reversals. Always need that extra confirmation.
Interesting. I actually find them quite useful for identifying potential tops/bottoms, especially when you see a squeeze followed by a strong breakout and then a quick snap back into the bands. It's not a standalone signal, for sure, but it's a strong component of my reversal strategy. What timeframe are you mostly using them on?