Great forex strategy that employs two forex indicators (EMA and Bollinger bands) in such a fashion, that entry and position exit are clear. In addition, this forex strategy offers great risk reward ratio. Tight stop loss and extreme trend following capacity allows risking only 30 pips, to get up to 300 pips.
Timeframe: any
Currency pair: any
Used indicators:
EMA (Exponential moving average) 50 (drawn as thick red line)
Bollinger bands: Default settings, drawn as thick blue line. Add 4 additional levels, visualised as thin green lines. 0.5 , -0.5 , 1.7 , -1.7
Rules for sell position.
Middle (central) line of BB is trending under EMA 50.
Price touches first green line above central BB band. Once, the candle closes we enter the position short.
At this point we place our stop loss at the second green line above central BB Band.
After price touches first green line under central BB we move stop loss to break even.
Full exit: Central BB band crosses EMA 50 upwards. We close all short positions.
Rules for buy position.
Middle line of BB is trending above EMA 50.
Price touches first green line under central BB band. Once the candle closes we enter the position long.
At this point we place our stop loss at the second green line under central BB Band.
Once the price touches first green line above central BB we move stop loss to break even.
Full exit: Central BB band crosses EMA 50 upwards. We close all short positions.
This strategy works amazingly well in trends and even in ranging markets is able to hold the ground of previously gained profits.
