Double
Bollinger Bands with Stochastic is a reversal trading system
based on two bolliger Bands and the slow stochastic oscillator. This
strategy is pretty good for Forex instruments more than other other
items like stocks because of the way that Bollinger Bands trade so
it's very good works very well for forex.
Time
frame 30 min or higher.
Currency
pairs: majors and minor (only time frame 4H or higher.
Forex
Indicator setting
Bollinger
Bands
Bollinger
Bands (20 period, deviation 2.0).
Bollinger
Bands (20 period, deviation 1.0).
Slow
Stochastic Oscillator (5, 5, 5 , close), with 25 and 75 levels.
Trading
rules Double Bollinger Bands with Slow Stochastic
Buy
Buy
when the price is oversold (price out the lower bands) and come back
above the upper band with deviation 1.0.
Stochastic
oscillator crosses upward above 25 level.
Sell
Sell
when the price is overbought (price out the upper bands) and come
back below the upper band with deviation 1.0.
Stochastic
oscillator crosses downward and below 75 level.
Exit
when the position trades back to midlle band or at the opposite bands
(2.0 or 1.0).
Place
initial stop loss below/above the bands of Bollinger Bands 2.0
deviation.
This
strategy works exceptionally in side markets.
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