How To Use Bollinger Bands, 1st Part TA Challenge?🤨

Firstly, u may wanna read out @Meta Moo guide
Meta Moo :What are Bollinger Bands and how do you read them?
on Bollinger Bands indicator, in short BB.
Hey 👋, this is not the BB (Big Boy or $BlackBerry Ltd (BB.CA)$) we are talking about here +.
@Meta Moo explanation is so good that I've nothing much more to add on... Yar, u are thinking I would say that? Still got some to add on = the definition ?

What is Bollinger Bands?
"It's a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences."

"Bollinger Bands were developed and copyrighted® by famous technical trader John Bollinger, designed to discover opportunities that give investors a higher probability of properly identifying when an asset is oversold or overbought."
Source: Investopedia - Bollinger Bands

So? Have u finally understand why it's call Bollinger Band?
Because it's named after the creator's name.
This is so that u cannot copy it & claimed that it is ur idea .

If u have read 📚 on @Meta Moo explanation on BB, u can now work out the practical with me (Using BB on stock).

Hmm... let's see... Guess I'll choose $Tesla (TSLA.US)$ although it's quite a heated topic (usually one will avoid Tesla... but I'm kinda an oddball ).

Let's look at the chart:
Very impressive right ? (Select "BOLL")
Very volatile stock .

How To Use Bollinger Bands, 1st Part TA Challenge?🤨

Do u see the volatility?
Circled yellow in the below picture.
BB expands = High Volatility

Circled green in the below picture.
BB contracts = Low Volatility

Usually, one won't dare to enter in the volatility stage. But for me, I'm a bit different 😤 .

& where do precaution ppls / investors enter?
I guess is some where near the mean, circled in blue / the pink line.

So, where do we enter?
I'll say is up to u .
We investors all have different trading styles. There're the aggressive, the timid & the precaution investors.
DYODD & decide for urself. Hey 👋, it's something like a personal thing... don't ask someone decide it for u & then later blame them if something went south +.

Next, we should not be over reliance on a single indicator. It's NOT 100% accurate.
P1:

As u see in P1, the candle bars moved out of the upper & lower BB.
That's the phase where it's very volatile.
However as u can see, the price still continue to increase at the upper band.
Sometime, the volatility is due to other factors & not solely the trend = eg. Stock Split
= re-adjusted valuation by some 'professional' analysts.
This is why BB may not be 100% accurate .

Not related:
$Tesla (TSLA.US)$ is a good stock to me. But ppls just can't stand the volatility & keeps making noise here & there.
If u can't stomach a volatile stock, I suggests u move to others before u have a mental break down.
I've nothing against any stocks. I'm just stating the facts & the fact does bring in harsh words for some small minded people...

Well, now using the BB indicator, do u have a clearer picture 📸 +.
(One of my favourites indicator )