Price bounces can be triggered by contact with any kind of support and resistance area. This can be a daily pivot line, a horizontal price support, a moving average line, or a Bollinger band line to name just a few.
This momentum strategy is very straightforward. All you need is the Bollinger bands indicator and to do some basic checking of chart candles. It trades on chart patterns that display signs of pending momentum – that is upward or downward acceleration in price.
Bollinger bands actually comprise three separate indicators and each tells you something about the price activity at a current point in the chart. This article looks at the Bollinger indicator, what each component of the indicator means.