That is why you do not go FOMO mode on cryptocurrencies Hello, traders.
See how to identify overbought charts with Bollinger bands indicator.
Bollinger bands consist of three lines that plotted in the chart. The line in the middle is usually a simple moving average configured for a period of 20, typically default for Tradingview.
The up and the low Bands are defined at two standard deviations away from the central MA.
Whenever the price is away of the standard deviation of the Bollinger bands, up is a sign of overbought rate and down is a sign of oversold,
Take care to get into assets outside the top and bottom bands.
Note, RSI above 80 is a good indicator showing overbought signals; combining these two indicators can make you do not enter FOMO in some assets.
