Sometimes it can get difficult to correctly identify range in the market. Numerous fakeouts require lot of experience for drawing horizontal supports and resistance with confidence. This forex strategy correctly assumes, that doji star found on our timeframe signalize presence of trading range in smaller timeframes. Strategy employs highly accurate breakout signal and offers great risk reward ratio, improved by utilizing Bollinger bands forex indicator for take profit target.
Bollinger bands (default)
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Forex strategy rules
We will be waiting for single Doji star candle. This signalize that range is present in lower timeframes. We will enter our position on breakout candle close.
Breakout candle clearly surpassing high of doji star and closing near its high (strong bullish candle).
Stop loss: We place stop loss one pip below the low of doji star candle.
Take profit: We exit with profit, once the price touches upper Bollinger band.
Breakout candle clearly surpassing low of doji star and closing near its low (strong bearish candle).
Stop loss: We place stop loss one pip above the high of doji star candle.
Take profit: We exit with profit, once the price touches lower Bollinger band.