Bollinger Bands make easy your options Intra day trade
Here are three possibilities of using the Bands for trading.
Bollinger bands shows probable lows and highs for the day with standard deviation of price action.In sideways or flat markets, when the price is nearer to the Lower bands there is a probability that the price may go up towards upper band . If price is nearer to the Higher Bands then there is a probability that the price may go lower towards the lower Band.
Use as Indicator for Market Direction:
These bands will show you the direction of the market either by showing the direction of their lower band or upper band moment. When Bands are moving very narrow, there could be a possible move either side which will be decided by the price of candle to which band they are near to.If some one to earn good money, one needs to look at these bands when they become narrow. When bands become narrow, there could be a possible strong move either side. To which side the move is going to be shown by the lower or higher bands.
This also applicable to any tradable instruments in the market, Could be Equity, Futures, options, Commodity contracts etc...
Suppose the candle is nearer to the lower bands and Bands are very narrow for quite some time, then price may move lower which will be shown by the downward moment of the Lower band.Moment of the lower bands & closing price of the candle below the lower bands confirms the trend.
Suppose the candle is nearer to the Upper bands and Bands are very narrow for quite some time then price may move to the higher levels which will be shown by the upward moment of the Upper band & confirmation by the candle closing above the upper band.