About strategy:
According to the main rules of the market, the price moves in a trend and a flat. A trend happens when the price goes up or down clearly, and a flat occurs when the price seems to be moving horizontally.
The longer the price moves in a flat, the stronger the outbreak will happen later. Yet, how to determine when this happens? The Bollinger Bands will help us here. But first, let’s talk about the causes of the flat to understand the market’s nature better.
Often, the market enters a flat at night, when the world’s markets are closed. Also, quotes freeze for some time before major economic news or events in the fundamental arena.
Our main task is to determine at what point the price will break out of the flat.
Pay attention to the Bollinger Bands. When they are far from each other, the trend controls the market. But when they start to separate, the market becomes flat.