Once price breaks the bollinger bands tunnel, it tends to move for a few pips more. This tendency, is utilized for scalping in this forex strategy. We will be looking for a 5 - 10 pips of profit. Risk reward ratio is negative. However strategy can offer very high win ratio. Strategy is provided with free expert advisor.
Used tools and indicators
Apply in 1 to 4H chart of any major pair.
Breakout tunnel: Bollinger bands, period 40 deviation 2.0
Breakout signal candle: crucial part of the signal, we will be looking for candle of at least 40 pips, with volume larger than previous candle
Trailing stop: Placed according to last closed candle. Adjusted only in the direction of winning trade. Extra distance of 60 pips is added to put trailing stop further from current price.
Take profit: 5 - 10 pips
Rules
Sell
Breakout candle (40 to 150 pips) closing below the bottom bollinger band (40,2).
Previous candle close occurred within the BB tunnel
It must surpass the low of previous candle, on higher volume than previous candle.
Trailing stop is placed at last closed candle high, with etra distance applied (60 pips).
Take profit: 5 - 10 pips
*We can use moving averages to define trend and trade only in that direction.
Buy
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Breakout candle (40 to 150 pips) closing below the bottom bollinger band (40,2).
Previous candle close occurred within the BB tunnel
It must surpass the low of previous candle, on higher volume than previous candle.
Trailing stop is placed at last closed candle high, with etra distance applied (60 pips).
Take profit: 5 - 10 pips
*We can use moving averages to define trend and trade only in that direction.
