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.