5 minute Bollinger Bands Breakout

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).