inside day Bollinger +
forex strategy inside day Bollinger +
forex strategy inside day Bollinger + is designed for traders, trading with the trend , so that they can earn large sums of money in just a few prisoners profitable trades, but at the same time wishing to accurately determine trend reversals .
But, in practice the trade the trend is much harder than it looks in the study of theory. So all we need for successful trading - the definition of maximum and minimum, as well as effective filter, which helps to identify the transaction at the top and bottom .
This forex strategy, we consider the " inside day Bollinger band ", which tends to help objectively determine what is the maximum, and that - at least.
In trading on Bollinger - is that the price is near the upper Bollinger band inidkatora considered high, and the price at the lower Bollinger band indicator is considered low. But the mere fact that the price reached the upper Bollinger band, does not mean that it is time to sell. Sufficiently strong trends can 'move' on the strip and "gobble up" any deposit forex trader who tries to buy 'low' prices falling trend, or enter into transactions to sell at 'high' prices on an uptrend.
Therefore, our filter must ensure that the trading signals generated by the purchase only if candle after the one that came in contact with Bollinger, does not comply with a new high or new low . Here are a type of candle is often called, "candle inside day".
The best time interval to search for "candles inside day" - the daily charts (D1 ), but this forex strategy tends to also be applicable on hourly, weekly or monthly charts . Promptness "inside days" with the Bollinger band indicator increases the chance to predict the top or bottom once the price has reached its extreme level. Usually, the more time passes, the less likely there will be such signals, but they will be much more important .
Candlesticks and their patterns represent us in the psychology of the market one point in the time interval. Of course, the "inner spark" is a range of low volatility. If in an uptrend market volatility starts to decline, and the price is not able to show a new high (as we said and a candle inside), then we certainly can conclude that the strength of the trend decreases and there is a chance for a reversal in the market. Connecting with the Bollinger band indicator, we ensure thereby that we are going to trade a reversal, concluding a deal to sell at high prices (the upper Bollinger band indicator) or by concluding a deal to sell at low prices (lower Bollinger band indicator). Thus, we make a deal with a large probability of a reversal of the market - that gives us a chance to get a great return on forex .
This forex strategy should be used Bollinger with a simple moving average and period 20 (SMA 20). To take a big price move, let the currency pair to go through a 20-period SMA, and only then move your stop-loss order with a moving average , closing a bargain at the close after currency pair to re-cross the SMA. To understand - see the examples below.
rules for the conclusion of the long trading positions on forex strategy "inside day Bollinger +":
1. Select the currency pair reached or very close to hitting the lower Bollinger Band .
2. We look forward to the next bar close, and make sure it least equal to the minimum or above the previous candle closed , and the maximum is also less than or equal to the maximum previous closed candles. If these conditions are fulfilled, then open position to buy at the opening of the third candlestick .
3. Initial stop-loss should raspolazhit a few points below the previous candle closed .
4. Reposition the stop-loss after the close of each new candle on the level , 20-period simple moving average SMA.
rules for making short trading positions of forex strategy "inside day Bollinger +":
1. We select the currency pair that has reached a highly closely approached the upper Bollinger band indicator .
2. We look forward to the next bar close, and make sure it is above the minimum or equal to the minimum the previous closed candles, and its maximum is also less than or equal to the maximum previous closed candles . If all conditions are fulfilled then, conclude a deal to sell at the opening of the third candle .
3. The initial stop loss have a few points above the previous candle closed .
4. reposition the stop-loss on a closing on the 20-period simple moving average SMA.
Consider a few examples:
1) deal to sell the currency pair EURUSD on a daily interval. Fig. 1, we observe that the price reached the upper Bollinger band, and then we need to wait for the day of the internal (to the maximum and minimum of the candles were not higher than the previous bar). When we waited for this, then at the opening of the next bar - 21.03.2006 year, open trading position to sell at 1.2144. Next, we move the stop-loss order on the basis of the motion, 20-period moving average SMA. The deal was eventually shut down March 24, 2006, at a price of 1.2035, with the profit 109 points .
2) short trade on the currency pair GBPUSD. In Figure 2 we see the same scenario as with pridyduschey deal on the currency pair EURUSD, but in this case proved to be more profitable transaction. Our deal has been opened for sale at a price of 1.7714, 31/11/2005. A closed on 1 December 2005 to 1.7310 with a price to make a profit 404 points .
3) currency pair USDCAD, which gave us the opportunity to see inside day Bollinger 03.06.2006 year. We had a deal to buy at a price of 1.1364. Upward trend did not last for many, no less - for a whole month, so that closed the deal at a price of 1.1618, April 5, 2006, to make a profit 254 points .
Based on the examples you may have noticed that out of the market can certainly improve by closing gains on open trade for another Bollinger . For example, in a transaction in a currency pair USDCAD, shown in Figure 3, we can close the earnings on March 20 at the upper Bollinger band indicator, at a price of 1.1680. To close the deal at favorable prices to be traded with 2 lots and take profits on 50% of them - Ie one on the opposite Bollinger band on the opening . Swap stop-loss second lot of 20-period moving average SMA (described at the beginning). Through such tactics, you'll be close profit at good prices, but while still leaving yourself a chance to take a good trend .
plants inside day with Bollinger bands tend to also be applicable to the identification of significant turns on the weekly (W1) or even monthly (MN) charts for long-term trading positions. The following examples show the trading signals of our setup at the top of the currency pair GBPUSD (weekly price chart) in Figure 4. At the bottom of the currency pair EURGBP (weekly price chart) in Figure 5. A good trading signal to buy at the bottom of the currency pair EURUSD at the end of 2000 on the monthly chart - it can be seen in Figure 6. And finally, the trading signal to sell USDJPY currency pair in Figure 7, in February 2002 at a price of 133.36 on the monthly chart. In the last example, the currency pair has been closed at a price of 119.49, only four months after opening!
have forex strategy "a combination of the inside day Bollinger bands with" there are lots of advantages . More obvious to everyone - it does not apply its simplicity . This forex strategy, we can easily measure your risk for each transaction and to place appropriate stop-loss. Terms of the strategy is dynamic, which means that it works on all time intervals . Even intraday trader tends to use it on the hourly chart. But, remember - shorter time scale - the less reliable is the trading signal .