Episode 76: Using Bollinger Band %B to Identify Overbought and Oversold Stocks

Published on July 4, 2021

New reviews top searched Commodity Trading, Volatility Trades, Trade Forex From Home, and Bollinger Bands Downtrends, Episode 76: Using Bollinger Band %B to Identify Overbought and Oversold Stocks.

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When one looks at Bollinger Bands, one generally looks at two things: (1) how far apart or how close together the Bollinger Bands are, and (2) where the stock’s current price is in relation to those Bands. Well, just as Bollinger BandWidth quantified the width of Bollinger Bands, Bollinger Band %B quantifies exactly where a stock’s price is in relation to those bands — and while “eyeballing” may seem easy enough, this indicator is far more useful and reliable than you might think at first.

In this episode, you’ll learn:

  • How Bollinger Band %B is calculated and what its outcomes mean — there are six general outcomes each with their own meaning.

  • What Bollinger Band %B can do — and how it is often misused in an attempt to make it do something it was not designed to do!

  • The five significant levels of Bollinger Band %B to look for.

  • How to add Bollinger Band %B to your charts at StockCharts.com.

We also take a look at a chart that shows an instance where you might think Bollinger Band %B is saying the stock is overbought — but it’s not. Later, %B gives a correct oversold reading that you might miss if you don’t know what to look for. Generally speaking, a high %B indicates a stock is overbought and a low reading means its oversold, but this can often be misleading. In order to know exactly how you should interpret %B, watch this video!

Bollinger Bands are some of the most useful technical indicators I know of, and their use is greatly enhanced by the introduction of Bollinger BandWidth. However, it is Bollinger Band %B that is most useful, and that’s why I’ve saved the best for last.

Happy Trading!

Bollinger Bands Downtrends


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That will probably be a high possibility trade. That’s where the idea of using the stop hunters to my advantage can be found in. It is still crucial to expect how the NASDAQ is oversold while the Russell 2000 is overbought.


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Episode 76: Using Bollinger Band %B to Identify Overbought and Oversold Stocks, Get popular reviews relevant with Bollinger Bands Downtrends.

Scalping The Forex Market For Mega Profits

This lasts about 60 days so it is well worth it to try a platform to your liking. Additionally, the weekly MACD and CCI are at extreme levels. You have reached the conscious proficiency stage.

The straddle method is a choice strategy that’s based on buying both a call and put of a stock. Keep in mind that there are various forms of straddles, however we will only be covering the basic straddle method. To initiate a Straddle, we would purchase a Call and Put of a stock with the very same expiration date and strike cost. For example, we would start a Straddle for company ABC by purchasing a June $20 Call along with a June $20 Put.


Recognizing a trending market with Bollinger Bands is very easy. Rate will walk up the upper band if the market is trending up. If the marketplace is trending down, cost will stroll down the lower band.

Scalpers typically engage in numerous trades each day. Some traders perform a number of trades and make revenues with ease. Don’t stress, I will teach you the technical knowledge of scalping the market. Scalps are executed in the instructions of the current pattern of the Forex market. You can’t escape from the truth that the “pattern is your buddy” if you don’t understand the pattern of the marketplace, don’t put any order.

And frustrating it is! In 2004 I opened my very first FOREX account with just a few hundred dollars in order to evaluate out the waters a bit. I figured, “OK, how hard can this be? I’ll just set my targets at 3 times the range to my stops so I’ll have a 1:3 risk/reward ratio. Then, all I require to do to earn a profit is be right more than 25% of the time on my trades. Any dolt can do that, right?” Well this dolt apparently couldn’t, because about a dozen trades later I believe I might have struck my target about twice Bollinger Bands Trader . Every other trade was stopped out. Unbelievable. What was taking place?

The appeal of scalping is that, it enables traders to trade even when other methods would make you sit with your PC for long without trading. Scalping is best utilized in combination Bollinger Bands with or as a supplement to other trading strategies – so keep trading your regular strategy that you are used to and add scalping to your trading tool kit.

Are you fully convinced that God does not oppose trading? Do you relate to trading as “dirty”? Do you have hesitations in your spirit about the matter? “Blessed is the guy who does not condemn himself by what he authorizes. But the guy who has actually doubts is condemned if he consumes, due to the fact that his eating is not from faith; and whatever that does not originate from faith is sin” (Romans 14:22 -23, NIV).

6) Whatever indications I use, simply as I will enter I look at the price and use the magic of the Psychological Numbers. I wouldn’t offer or purchase at a rate that’s banged on the Psychological Varieties of 00,50,20,80. For example if the signals are pre-confirmed and telling me I can go into a trade however state the buying cost is 1.2350, I do not get in given that the last two digit of the price is one of the Psych numbers. I wait till it passes that 50 psych number like 55 or 60 then I would enter a BUY if I would like to BUY. The trend could really potentially alter prior to or right after the psych numbers.

The Normal Distribution or Bell Curve is a basic statistical measurement system used in clinical research studies. In fact, there are numerous that it is very simple to end up being exacerbated and baffled.

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