Awesome with Bollinger Bands is a trend reversal forex strategy.
Strategy Setup
Trading occurs between 3:00 am to 11:00 am ESDT (Eastern Standard Time) within a 5-minute time frame focusing on major currency pairs.
Currency pairs:AUDUSD, NZDUSD, GBPUSD, EURUSD, USDCHF.
Indicators utilized are:
Bollinger Bands (20; 2),
Awesome Oscillator,
MACD (12, 26, 9).
Trading Rules
Trades are executed when the Mid Bollinger Band (BB), Awesome Oscillator (AO), and MACD align.
Long Entry
A bullish candle closing above the Mid BB signals entry at the opening of the next candle if other indicators confirm.
Confirmation includes: AO turning green above zero, MACD green line above red line, and MACD histogram above zero.
Short Entry
A bearish candle closing below Mid BB signals entry at the opening of the next candle.
Confirmation includes: AO turning red below zero, MACD red line below green line, and MACD histogram below zero.
Exit position
Most important rules include taking only 10 pips per trade, setting stop losses three pips under Mid BB for Long trades and three pips above for Short trades, aiming for a daily target of 40 pips, and trading exclusively on the 5-minute timeframe.
Exiting trades aims for a profit target of 6-10 pips while adhering to risk management guidelines of not risking more than 2-3% of the account size.
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