What are the best settings for using Bollinger Bands in cryptocurrency trading?

3 answers

• Cute DollApr 09, 2021 · 5 years ago
  Bollinger Bands are a popular technical analysis tool used in cryptocurrency trading. They consist of a middle band, which is a simple moving average, and an upper and lower band that represent the standard deviations from the middle band. The best settings for Bollinger Bands in cryptocurrency trading depend on the specific cryptocurrency and the time frame you are trading. Generally, a common setting is to use a 20-period simple moving average and set the standard deviation to 2. This setting helps identify potential overbought or oversold conditions in the market.
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• NsuhaFeb 26, 2021 · 5 years ago
  Bollinger Bands are like the Swiss Army knife of cryptocurrency trading. They can help you identify trends, volatility, and potential reversals. The best settings for Bollinger Bands vary depending on your trading style and the specific cryptocurrency you are trading. Some traders prefer shorter time frames and tighter settings, while others prefer longer time frames and wider settings. It's important to experiment and find the settings that work best for you and your trading strategy.
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• Oleg SmolnikovJun 14, 2023 · 2 years ago
  When it comes to using Bollinger Bands in cryptocurrency trading, there is no one-size-fits-all answer. The best settings for Bollinger Bands can vary depending on the market conditions and the specific cryptocurrency you are trading. It's important to understand that Bollinger Bands are just one tool in your trading arsenal and should be used in conjunction with other indicators and analysis techniques. As for BYDFi, they recommend using a 20-period simple moving average and a standard deviation of 2 for most cryptocurrencies. However, it's always a good idea to do your own research and backtest different settings to find what works best for you.
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