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Bollinger bands + EMA FOREX strategy

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.

Bollinger bands + EMA FOREX strategy

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

Bollinger bands + EMA FOREX strategy

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.

ABOUT US

THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com

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