FOREX Bollinger on steroids
Forex Strategy Bollinger on steroids
algorithm strategy Forex Bollinger on steroids:
- D1 candlestick chart
- Bollinger Bands (20,1) - blue paint (indicator Bollinger Bands in the standard trading platform Metatrader 4 (in - Insert / Indicators / Trends / Bollinger Bands).
- Bollinger Bands (20, 1.5) - with white paint .
opening trade on forex strategy "Bollinger on steroids":
Terms of trade on the forex strategy best case in point.
And so, there are two types of inputs in the market. Let's call trading signals for entry into the market, for the sake of simplicity - white and blue signals signals .
basic rule of strategy Forex Bollinger on steroids:
WHITE Trading Signals always important than blue signals.
White trading signals for entry into the market.
This original way of trade, from which evolved the strategy, forex, was based precisely on the "white" trading signals. White vonikaet signal once the price touches the white Bollinger band indicator and then locked inside the channel . Let's examine this principle in the figure.
two green arrows.
The 2 green arrows indicate to us when we make a deal on a purchase. As seen in these 2 cases, the price reached the white line, then opened trading position to purchase, at the close of the candle inside the channel. For these transactions, earnings rose to SMA (Bollinger midline).
three red arrows.
The 3 red arrows indicate to us when we close a sale. As can be seen in all 3 cases, the price touches the upper Bollinger white line, then still closed within the channel. As a profit again use SMA on the daily range.
Blue trading signals.
Blue trading signals represent dwelleth between "steroids" part of this strategy. "Blue" trade signals are generated at a time when the price is within the channel, after which it goes beyond the blue line of the channel Bollinger. Let's see how it works.
The price was within the channel, and then broke through the blue line up Bollinger. Pay attention to the fact that she has not reached the white line Bollinger, ie "White" was not trading signal . This trading signal for the opening of a long trading position (buy). When "Blue" signals take-profit is not put , the order remains open until you see the next "white" signal. At this point, the deal is closed.
two red arrows.
Price came out of the canal and crossed the blue line down Bollinger. These signals were unprofitable. But without losing trades do not happen no one, even the most successful forex strategy.
Stop-loss orders to trade forex strategy at Bollinger streroidah:
Install safety stop-loss is up to you. Personally, I am to determine the safety stop-loss distance from the current use on the chart to SMA (middle line of the Bollinger). That is, if the price is at 1.9635 and 1.9435 for SMA, my safety stop-loss will be 200 points. Someone out there so much stop-loss orders do not like, but I prefer to use just such tactics set stop-losses in the forex strategy.