If you're looking to level up your trading game, let’s dive into an intriguing variation of the Bollinger Bands. This one introduces the concept of post-smoothing on the outer bands, which can really fine-tune your analysis.
The idea behind this approach is to individually smooth the upper and lower bands after we've done the standard deviation calculations. What does this mean for you? It means you can achieve a more refined look at your price levels with these bands.
The beauty of this method is that the smoothing of the upper band doesn’t have to mirror any adjustments made to the lower band. In simpler terms, each band can be fine-tuned independently, providing you with a clearer picture of market momentum.
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