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Breakout scalping with bollinger bands: FOREX strategy

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

  1. Breakout candle (40 to 150 pips) closing below the bottom bollinger band (40,2).

  2. Previous candle close occurred within the BB tunnel

  3. It must surpass the low of previous candle, on higher volume than previous candle.

  4. Trailing stop is placed at last closed candle high, with etra distance applied (60 pips).

  5. Take profit: 5 - 10 pips

  6. *We can use moving averages to define trend and trade only in that direction.

Buy

Get FREE MT4 Expert Advisor trading this forex strategy

  1. Breakout candle (40 to 150 pips) closing below the bottom bollinger band (40,2).

  2. Previous candle close occurred within the BB tunnel

  3. It must surpass the low of previous candle, on higher volume than previous candle.

  4. Trailing stop is placed at last closed candle high, with etra distance applied (60 pips).

  5. Take profit: 5 - 10 pips

  6. *We can use moving averages to define trend and trade only in that direction.

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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