Scalping Strategy Envelope with
Bolliner Bands uses s ADX, Bollinger Bands and Envelope
indicators. The purpose of this strategy is based on searching new
trends and following them. For the new trend determination, Bollinger
Bands and Envelopes indicators are used. For the trend strength
determination, ADX indicator is used. The strategy works for
different currency pairs and short timeframes.
BUY signal:
The BUY signal occurs when the
following signals take place:
The candle is closed, and its Low
price is above both Envelope lines and Bollinger Bands middle line.
The High price is above Bollinger Bands
top line.
ADX line value is higher than 30 but
lower than 50 which means that the trend is powerful enough but is
not exhausted.
ADX indicator +DI line is above –DI
line which means that the upward movement has strength. When all
signals take place, this strategy opens a long position with the
corresponding trailing stop and take profit. A long position will be
closed by take profit or trailing stop, or if the current price is
below at least one of the Envelope lines or the Bollinger Bands
middle line.
Sell Signal
The candle is closed, and its High
price is below both Envelope lines and Bollinger Bands middle line.
The Low price is below Bollinger Bands
top line.
ADX line value is higher than 30 but
lower than 50 which means that the trend is powerful enough but is
not exhausted.
ADX indicator -DI line is above +DI
line which means that the downward movement has strength. When all
signals take place, this strategy opens a short position with the
corresponding trailing stop and take profit. A short position will be
closed by take profit or trailing stop, or if the current price is
above at least one of the Envelope lines or the Bollinger Bands
middle line.
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