Which of the following would NOT be true in designing a trading system utilizing bands?
A. Buy when prices penetrate the upper band
B. Close out longs when prices reverse and go below the center of the band
C. Close out shorts when prices reverse and go below the center of the band
D. Sell when price breaks below the lower band
Answer:C
Which of the following would NOT be true in designing a trading system utilizing bands?
A. Buy when prices penetrate the upper band B. Close out longs when prices reverse and go below the center of the band C. Close out shorts when prices reverse and go below the center of the band D. Sell when price breaks below the lower band