Objective:Capture trend reversal movements leveraging Bollinger Bands with different deviations.
Indicators:
- Bollinger Bands (25, 3.0) for market condition identification.
- Bollinger Bands (20, 1.0) for entry timing.
- MACD (7, 21, 7) for confirmation.
Setup Strategy:
- Time frame: 5 minutes or higher.
- Instruments: Gold, Nasdaq 100, volatile currency pairs.
Trading Rules:
Buy
Enter long positions when price touches or breaches lower Bollinger Band (3.0 deviation) and retraces towards central moving average.
Confirm when the price closure enter the Bollinger Bands with deviation 1.0
Validate with MACD histogram near zero or showing positive values.
Sell
Establish short positions when price touches or penetrates upper Bollinger Band (3.0 deviation) and retraces towards central moving average.
Confirm when the price closure enter the Bollinger Bands with deviation 1.0
Validate with MACD histogram nearing zero or displaying negative values.
Re-enter if the first entry fails even if the price does not touch the outer band
Exit Position
Implement stop-loss orders at preceding swing highs for buy positions and swing lows for sell positions.
Set profit targets with risk-reward ratio ranging from 1:1 to 1:1.5.
Money Management
Allocate fixed risk of 1% per trade.
Additional Considerations
Exercise surveillance during high market volatility.
Avoid trading during high-impact economic releases or events.
Regularly evaluate strategy efficacy and adapt as necessary.
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