Bollinger Bands Momentum Trading

Bollinger Bands momentum trading is a forex strategy that trade the momentum in trend with Bollinger, Parabolic SAR an Stochastic oscillator.

Time Frame 5 min or higher.

Currency pairs: EUR/USD, USD/CHF, GBP/USD, USD/JPY, GBP/JPY, EUR/GPB, AUD/USD, EUR/AUD, AUD/JPY, 

Forex Indicators:

Bollinger Bands (period 20, deviation 2.0);

RSI (14) optional ;

CCI (20) optional ;

MACD (12, 26, 9) optional;

Parabolic SAR (0.02, 0.13);

Stochastic oscillator (8,3,3),

Trading Rules Bollinger Bands Momentum Trading

For Buy To Enter (UPTREND)

1. Look for the currency pair to hit or come very close to hitting the lower Bollinger.

2. Wait for the next candle to Make sure it is a white candle which indicates bullishness .RSI and CCI should go up.(Optional)

Stochastic oscillator should be at bottom. Parabolic Sar should preferably be below Price. If so, go long at the open of the third candle. Exit when it reaches the upper Bollinger.

3. The initial stop is placed at the first candle's low or 100 Pips below the buy entry price whichever is lower.

For Sell To Enter(DOWNTREND)

1. Look for the currency pair to hit or come very close to hitting the upper Bollinger.

2. Wait for the next candle to Make sure it is a black candle which indicates bearishness. RSI and CCI should go DOWN (Optional)

Stochastic oscillator should be at top. Parabolic Sar should preferably be above Price. If so, go short at the open of the third candle. Exit when it reaches the lower Bollinger

3. The initial stop is placed at the first candle's high or 100 Pips above your sell price entry whichever is higher.