5
minute Bollinger Bands Breakout is a trading system based on
Bollinger bands, EMA and Momentum indicators.
Time
Frame 5min or higher
Currency
pairs: majors, Indices.
Setup
5 minute bollinger bands breakout:
Forex
Indicators:
10
Exponential moving average ,
50
Exponential moving average ;
Bollinger
Bands (period 20, deviation 2);
Stochastic
Oscillator (5,3,3 );
Parabolic
Sar (default);
MACD
Histogram (9, 12, 26, Close, );
Relative
Strength Index (period 14);
Rules
5 minute Bollinger Bands Breakout
Trading
the breakout with Bollinger Bands is to enter a trade when the price
‘breaks out’ of a tight range of the Upper or Lower band.
Buy
Price
break out the upper band of BB.
Price
above10 EMA and 50 EMA.
Parabolic
dot below the candle.
MACD
above zero level.
RSI
above 50 level.
Exit
position when parabolic changes direction or with 7- 12 pips in gain
depends by pair.
Place
initial stop loss 2 pips below middle band.
Sell
Price
break out the lower band of BB.
Price
below 10 EMA and 50 EMA.
Parabolic
dot above the candle.
MACD
below zero level.
RSI
below 50 level.
Exit
position when parabolic changes direction or with 7- 12 pips in gain
depends by pair.
Place
initial stop loss 2 pips above middle band.
In
the above example, EUR/USD 5 min chart, the price breaks out of the
outside Bollinger Bands, In this case if you bought EUR/USD
at 1.1815 and Closed your position at 1.1840 , you could have gained
25 pips profit.The price (brown) is above the EMA 10 (red),
the middle BB line (green) and the EMA 50 blue. The Parabolic SAR
dots are below the price. The MACD Histogram is above 0 .
The RSI is above 50 , and the Stochastic Oscillator blue
line is above the red line .
EUR/USD
5 minute breakout SELL. You could have sold the EUR/USD at 1.1440 and
closed your position at 1.1390 for a 50 pip profit. The price is
below the EMA 10 (red), the middle BB line (green) and the EMA
50 blue. The Parabolic SAR dots are above
the candle price.
The
MACD Histogram is below 0 The RSI is below 50 level
downward momentum, and the Stochastic oscillator blue line is below
the red line (bearish momentum).
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