This forex strategy helps us with trend drawing using Bollinger bands forex indicator. Moving averages are used to stay on the right side of the trend. Utilising 50/50 approach it goes only for what is asking for – profit equals loss. Therefore, in absolutely chaotic conditions, strategy is able to hold its ground by number of profitable/losing trades being practically equal. In trending market conditions, strategy gains its edge by trending with the trend, considering volatility and one of the most accurate signals – tunnel breakout.
Used forex indicators:
Bollinger bands forex indicator (default)
SMA (smoothed moving average) 150
Forex strategy rules
Recommended time frame: any
Currency pair: any
SELL:
Central Bollinger band is trending under SMA 150.
Price has closed above upper BB only to return and close back under bottom band. We enter on BB breakout candle close (candle that penetrated bottom BB).
We place stop loss at highest point reached by price, while it closed above upper BB.
Take profit equals stop loss.
BUY:
Central Bollinger band is trending above SMA 150.
Price has closed below bottom BB only to return and close back above upper band. We enter on BB breakout candle close (candle that penetrated upper BB).
We place stop loss at lowest point reached by price, while it closed below bottom BB.
Take profit equals stop loss.
