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Bollinger bands 3 peak breakout, FOREX strategy

This is surprisingly effective forex strategy, solving a lot of issues with breakout trading using single elegant solution. Utilizing fractals and bollinger bands, it is able to find trading range even in unstable market structure. This strategy looks past the bias of fakeouts and is able to immediately establish support and resistance levels accurately and as a zones ! Looking for breakouts suddenly becomes easy and fun.

Used forex indicators

Bollinger bands: period 10

Fractals: default MT4 settings

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

Forex strategy rules:

Draw Fractals and BB in chart (above 15min) of any currency pair.

Look for horizontal channel, by finding three bearish fractals lying almost in same price level, and three bullish fractals, lying in almost same price level.

Why almost ? It is next to impossible to find those fractals perfectly aligned in forex. It is also not what we are looking for. Vertical distance between the fractals should be as small as possible. If not sure avoid the signal.

  • We place horizontal lines at wide base of the highest bullish fractal and base of the lowest bullish fractal. Thus creating support zone.

  • We place horizontal lines at wide base of the highest bearish fractal and base of the lowest bearish fractal. Thus creating resistance zone.

Bollinger bands 3 peak breakout, FOREX strategy

Sell: Breakout candle closing below support zone. We enter immediately (at market) on new candle open. Stop loss is placed above the high of the tunnel formation. Take profit: Bullish candle closing above central bollinger band.

Bollinger bands 3 peak breakout, FOREX strategy

Buy: Breakout candle closing above resistance zone. We enter immediately (at market) on new candle open. Stop loss is placed below the low of the tunnel formation. Take profit: Bearish candle closing below central bollinger

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. ” 

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—  Marian, Proprietor of TheForexkings.com

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