Bollinger Band Breaches

Apr 9, 2021

This chart represents breaches of the bottom bollinger band by the FTSE 100. The FTSE100 is represented here by the CUKX.L asset. On each breach a long entry with a 2-3% profit target yields a profitable outcome. My observation is that the market generally recovers in excess of the 2-3% target price within 10-14 days maximum. In adverse events, where the market continues to fall and there is a further breach before the price target is hit, this strategy requires the another entry into the position (with the same price target with the first trade). I am publishing this idea so that I have this chart saved online, this is not the finalised form, and requires some tweaks and further analysis. Welcome thoughts and critiques.