Range Trading with Bollinger Bands and
MACD is designed for range market. The purpose is improve the
profitability when the market changes from flat at trend.
Time frame 5 min. 15 min, 30 min.
Currency pairs: GBP/USD, USD/JPY,
EUR/USD, GBP/JPY, AUD/USD,USD/CHF.
Indicators:
Bollinger Bands (50 period –
deviation 3.0)
MACD (9,17,3)
Range Trading scalping with Bollinger
Bands and MACD ha s two entries is as a tactic of war.
The first entry is based on Bollinger
Bands the second comes into play only when the stop loss of the first
entry is activated and is based on the MACD.
Rules
Long Trade
First
1. Wait for the
market to touch the lower band of the Bollinger Bands.
2. Enter for a
long when the market price touches the lower band of the Bollinger
Bands.
3. Stop loss at 10
pips below the entry price 5 min time frame 15 pips for 15 min time
frame.
4. Profit target
at 5 pips above the entry price or at the midlle band.
5. The price
action activate the stop loss of the first trade with the Bollinger
Bands.
Second
1. enter a buy
order when MACD crosses upward.
2. Place initial
stop loss below the lower bands.
3. Profit Target 5
min time frame 5-10 pips, 15 min time frame 8-15 pips.
Short Trade
First
1. Wait for the
market to touch the upper band of the Bollinger Bands.
2. Enter for a
short when the market price touches the upper band of the Bollinger
Bands.
3. Stop loss at 10
pips above the entry price 5 min time frame 15 pips for 15 min time
frame.
4. Profit target
at 5 pips below the entry price or at the midlle band.
5. The price
action activate the stop loss of the first trade with the Bollinger
Bands.
Second
1. enter a sell
order when MACD crosses downward.
2. Place initial
stop loss above the upper bands.
3. Profit Target 5
min time frame 5-10 pips, 15 min time frame 8-15 pips.
The forex trading
war machine project is ready. In the charts in pictures of trading
examples.
In the chart of
the first picture we have 8 trades, 2 stop loss that activate the
second strategy. (6 winning and 2 loss).
In the picture
above we have 4 winning trades without stop loss.
In the last chart
we have three consecutive Stop Loss. Do not worry the system recovers
the losses.
For money
mangement you can also apply the martingale. On this idea is simple
to build a forex robot.
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