Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro

Bollinger Bands Trading Strategies

Chart = Bollinger Bands Trading Strategies

There are thousands of Bollinger bands trading strategies, but only

few derive from a market stable data or principles.
Consequently, traders who do not grasp financial market principles

waste time and money trading those hit and miss Bollinger bands

strategies. Though, this article is not about market stable data, it

will reveal to traders three unique Bollinger Bands trading strategies

that derive from specific market principles.

Bollinger Bands Strategies Tools

The first Bollinger bands strategy uses the following trading tools.
1/ Bollinger bands (20, 2)
2/ Moving Average eight
3/ Moving average twenty

The second Bollinger bands strategy utilizes the following tools.
a/ Bollinger bands (30, 2)
b/ Moving average twelve
c/ Moving average thirty

Finally, the third Bollinger bands strategy utilizes the following tools.
Bollinger Bands (50, 2)
Moving average twenty
Moving average fifty

Using Bollinger Bands Strategies

Like every trading strategy, it is necessary that one does not breach

the top down trading strategy. One will also combine the technical

analysis with the fundamentals and economic news.
Furthermore, one will only take direct trading signals.

Final Point To Remember
When one is using a trading strategy, one ought to remain disciplined. Also,

one must test and retest it before trading it for real.
Please use a demo account, and do not repeat the seven biggest

trading mistakes.

Bollinger Bands Strategy One

A high probability bullish trade set-up
is in place when the moving average eight is above the MA twenty, but the
price is retesting the lower band of the Bollinger Bands (20, 2).

One will now go the signal time frame, and wait for a direct trading signal.
Subsequently, one will switch to the entry time frame to enter the trade.

On the hand a bearish trading set-up is in place when the moving average

eight is below the moving average twenty, but the price is tagging the upper

band of the Bollinger bands.
Once again one will apply a top down trading method because this is just

a trading set-up.

Traders may use the daily chart for the trading set-up, hourly chart for the signal
and three-minute or ten-minute time frame for the entry.
Please find below other combinations of different times frame.
4H, 15M, 3M
2H, 10M, 3M
Weekly, 4H, 15M
Monthly, daily, hourly.

The first higher time frame is for the trading set-up, but the second higher

period is for the trading signal.
The lower time frame is for the entry.