This tool is known as the Hurst Channel or Hurst Bands . At first sight, it might resemble the Bollinger Bands because it consist of three bands, upper, lower and middle band.
So how do you trade this? If the asset is in a downtrend , you will see lower highs .
If these lower highs retrace up to the upper band, you go with the main trend and take a sell.
If you are in an uptrend , you should see higher lows that bounce off of the lower band.
Stay concentrated on the highs and lows!
For targets I recommend using Classic Pivot Points / Camarilla Pivot Points as horizontal support and resistance, along with the Hurst Channel.
