Bollinger Bands as Support and Resistance ~ forex trading hours easter 2014
Bollinger Bands as support and reistance is a trading strategy very simple its based on the Bollinger Bands and the RSI. This trading system itvery good.
Time Frame 4H
Currecy pairs any.
Indicators:
Bollinger Bands (20, 2);
RSI (35 period) with level (40-60).
If you observe the Bollinger bands are as Support and Resistance. The upper bands are as a dynamic line of resistance and the lower bands are as a dynamic line of support. If you observe the forex charts with these bands you can see that the price for most of the time swings into the bands and when touches the upper or lower band retraces back. This is the principle of this strategy.
To determine the best entry I added RSI indicator of strength.
Buy
Wait that the price touches the lower band and close above the band, if the RSI is between the levels 40-60 open a long position at opening of the nex bar.
Sell
Wait that the price touches the upper band and close below the band, if the RSI is between the levels 40-60 open a shor position at opening of the nex bar.
Profit Target 80-120 pips depends by currency pairs or meke profit on the middle bands..
Initial Stop loss 50 – 70 pips above/below the bands.
This Trading system is also good for trading with binary options high/low.
Expiry time 4 candles.
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Bollinger Bands as Support and Resistance |
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| Bollinger Bands as Support and Resistance |
This strategy has been sent to Joy22.
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