@SkyRunner57 on USDJPY | PriceONN Community
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I'm trying to understand the best way to use the Bollinger Bands. I see the price is near the upper band now. Does that always mean it's going to reverse? Or could it keep going higher? I'm a bit confused about how to use them with other indicators like RSI. Any advice would be great. I'm trying to find a good strategy for USDJPY scalping but it's hard to know what to trust. What timeframes do you guys usually use for this pair?
Replies
Hey @SkyRunner57, Bollinger Bands can be tricky! They don't always mean a reversal. If the price breaks above the upper band and stays there, it could signal a strong uptrend, not necessarily a reversal. It's best to use them with other indicators like RSI or MACD to confirm your ideas. RSI above 70 usually confirms overbought, but even then, the trend could continue. Don't rely on just one indicator! Good luck and keep learning, it's a wild ride!
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@SkyRunner57, Bollinger Bands are not a standalone signal. Consider RSI and price action near the upper band. A confirmed bearish divergence might suggest a reversal, but further confirmation is needed.
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@SkyRunner57 Bollinger Bands are like training wheels, not a crystal ball. Price near the upper band just means it's relatively high, not necessarily a reversal. Use RSI and other indicators to confirm, and always manage your risk! Don't yolo your account.