Breakout trading with bollinger bands

Bollinger bands mt4 indicator is one of the traders can help to determine the direction of the market price. Because bollinger bands are widened when the trending, and narrowed when markets are flat (sideways). With based on the workings of the bollinger bands so we can use it to earn a profit in trading.

We need to remember that if market prices are sideways then both bands will be narrowed so that the bollinger bands appear flat. At the time being that we can use it sideways by applying scalping techniques. We open sell position when price touches the upper band, likewise when touching the bottom band we open buy position.

But at a time when prices are trending will occur, usually marked with open width of upper bands and lowerbands. Well, the question is whether the trend is happening later upward or downward? So that we can take advantage of the occurrence of the early trend, then we must use breakout trading.

OPEN TO BUY
Please see the picture below

• Go to the market in the European session, i.e. at the time of the London market opened. 
• Then, see the highest and lowest price of previous Draw the line at a price close to the highest and lowest before this time.
• Wait until the price movements exceeding the line resistance (above). 
• If the price exceeds the line of resistance then we open a buy position.

OPEN TO SELL

Please see the picture below

• Go to the market in the European session, i.e. at the time of the London market opened. 
• Then, see the highest and lowest price of previous Draw the line at a price close to the highest and lowest before this time.
• Wait until the price movements exceeding the line support (below). 
• If the price exceeds the support line (bottom) then we open a sell position.

SIDEWAYS
Please see the picture below

Prices are sideways usually occurring in Australia and Asia session. Usually the price range, i.e. up and down ranges less than 50 pips. That's when bollinger bands seem narrow and flat. We can take advantage of the moment to do a transaction buy if the price touched lower band, and sell if the price touched upper band.
See image above