TSARIN BB + RSI STRATEGY (1)

Bollinger Bands are a popular technical indicator used by traders in the market. John Bollinger is the person who developed this indicator in 1980.

The purpose of these three lines contained within the indicator is to provide information about market price movements:

1. The upper line "upper band"
2. The middle line "middle band"
3. The lower line "lower band"

The upper line indicates price increases, while the lower line shows price decreases. The middle line acts as a horizontal line that separates the indicator data between the two bands; it represents the "baseline."

Traders use this indicator to assess market volatility. This is why it is categorized among 'volatility indicators.'

Additionally, this indicator helps identify overbought and oversold conditions. When the price touches the upper line, it signals a selling tendency, while touching the lower line indicates a buying tendency.

The space between the lower, upper, and middle lines reflects market uncertainty or price fluctuations, known as 'volatility' in English.

The middle line is calculated using an average of the past twenty periods, known as a "20 period moving average." The upper and lower lines are set at 2 standard deviations (StdDev) above and below this moving average. 'StdDev' or 'standard deviation' is a statistical measure that indicates the extent of price volatility.

When the lines widen, it signifies significant price movement in the market. Conversely, when the price remains stable and the lines narrow, it indicates low volatility and limited price movement due to reduced trading activity during this period.

You can apply this trading system over a period of one hour or four hours. You may also adjust the timeframe as desired.

Insha Allah, we will continue!