This trading strategy has been developed by Bollinger Bands and Fractal indicator. Of course there are many other ways forex traders spot trends, but moving averages are one of the easiest to use. When the market is quiet, the bands contract and when the market is LOUD, the bands expand. The price formed a nice bearish engulfing pattern in the Bollinger dynamic resistance level.
This strategy is a continuation of the previous strategy I submitted before (Forex trading strategy #22 ). To close the transaction at favorable prices, one would have to trade with 2 lots and take profits on 50% of them — ie one on the opposite Bollinger band on the opening.
The conservative level to use in these cases is some point between the middle line of the bands and the SMA34, not the exact price level of the indicator. I also use a stochastic indicator with settings at 5, 3, 3 exclusively on the 1-minute charts to spot immediate divergences for extremely short-term trading.
I'm charting a 20 tick range bar of Crude Oil with the Bollinger Band settings above. A bullish bounce (or bullish reversion) is when the currency is in an uptrend and then pulls back to the lower Bollinger Band. In this article, I refer to this Bollinger Bands indicator as BB2, because its deviations is set to 2.
Bollinger Bands with Val Bands Trading - Advanced Accurate Forex Bollinger Bands Trading System is a volatility-trend following strategy for intraday trading but it's also good for swing or for trading with binary options high/low. It has been discovered that selling the breaks of the higher Bollinger Band is a way to take advantage of overbought conditions.
UPTREND = If price is tagging the Upper Bollinger Band and the Upper Bollinger Band is clearly pointing up. Let's try a basic ranking strategy in order to systematise the selection process. Users of the Moving Average or MA would be very familiar with a price crossover of the middle band.
The emphasis here is on the market being range-bound (Bollinger bands will be sideways). Another great way to use Bollinger Bands is to integrate the indicator with the Elliott Waves theory. In addition, the rules for entering and exiting a trade and clear and straight forward, which makes this Bollinger Bands strategy easy to implement.
This strategy is a continuation of the previous strategy I submitted before (Forex trading strategy #22 ). To close the transaction at favorable prices, one would have to trade with 2 lots and take profits on 50% of them — ie one on the opposite Bollinger band on the opening.
The conservative level to use in these cases is some point between the middle line of the bands and the SMA34, not the exact price level of the indicator. I also use a stochastic indicator with settings at 5, 3, 3 exclusively on the 1-minute charts to spot immediate divergences for extremely short-term trading.
I'm charting a 20 tick range bar of Crude Oil with the Bollinger Band settings above. A bullish bounce (or bullish reversion) is when the currency is in an uptrend and then pulls back to the lower Bollinger Band. In this article, I refer to this Bollinger Bands indicator as BB2, because its deviations is set to 2.
Bollinger Bands with Val Bands Trading - Advanced Accurate Forex Bollinger Bands Trading System is a volatility-trend following strategy for intraday trading but it's also good for swing or for trading with binary options high/low. It has been discovered that selling the breaks of the higher Bollinger Band is a way to take advantage of overbought conditions.
UPTREND = If price is tagging the Upper Bollinger Band and the Upper Bollinger Band is clearly pointing up. Let's try a basic ranking strategy in order to systematise the selection process. Users of the Moving Average or MA would be very familiar with a price crossover of the middle band.
The emphasis here is on the market being range-bound (Bollinger bands will be sideways). Another great way to use Bollinger Bands is to integrate the indicator with the Elliott Waves theory. In addition, the rules for entering and exiting a trade and clear and straight forward, which makes this Bollinger Bands strategy easy to implement.