Chart = Bollinger Bands Trading Strategies
are thousands of Bollinger bands trading strategies, but only
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
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
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,
must test and retest it before trading it for real.
Please use a demo account, and do not repeat the seven biggest
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
of the Bollinger bands.
Once again one will apply a top down trading method because this is just
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
is for the trading
The lower time frame is for the entry.