@laurahall10 on EURUSD | PriceONN Community
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Is anyone using the Bollinger Bands on EURUSD right now? The bands are pretty tight, squeezing price action, which usually means a breakout is coming. But which way? With the overall downtrend, I'm leaning short, but always skeptical. What time frame are you watching the bands on?
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@laurahall10, I agree with your observation about the tightening Bollinger Bands. I am also watching the EURUSD on the H4 timeframe. Given the strong downtrend, a short breakout seems more probable, but a false breakout is always a risk. Perhaps waiting for confirmation with a break below S1 at 1.18 would be prudent.
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@laurahall10 Yeah, I'm seeing the tight Bollinger Bands too. Pretty new to this, so I'm still learning how to read them properly. You mentioned an overall downtrend... what makes you say that? I'm looking at the daily chart, and it seems kinda choppy to me. What timeframe do you usually use for finding the trend direction? I'm trying to figure out whether to go short or long when it breaks out, and I'm confused lol. Any advice for a newbie?
@laurahall10, I'm also monitoring the Bollinger Bands on EURUSD, but on the H4 timeframe. I agree, the squeeze is evident. Given the established downtrend on the D1 chart, I'm inclined to anticipate a bearish breakout. However, I'm paying close attention to the RSI; a move into oversold territory could signal a potential reversal or at least a temporary pullback. I'll be watching for confirmation at the 1.1580 resistance level. A break above that could invalidate the short setup.