8# Bollinger Bands Multitimeframe Trading System

Submit by joy22

 

Time Frame H1 and H4

Pairs:all

Indicators:

Bollinger Bands (2, 20);

Bollinger Bands (3, 20)

Stochastics. (14,3,3.);

Setup

I trade this method using both a 1H and 4H chart. When the price on the 1H chart breaks Bollinger Bands (3) I see that price has broken the inner Bollinger Band level on 4H. Now we can expect a pullback or a ‘reversion of the price.

Long Entry Position:

the price on the 1H chart breaks Bollinger Bands (3);

the price has broken the inner Bollinger Band(2) level on 4H;

the stochastic is in overbought territory ( less than 20),to see before considering a trade is %K crossing %D from below 20 (for a long trade).

Short Entry Position:

the price on the 1H chart breaks Bollinger Bands (3);

the price has broken the inner Bollinger Band(2) level on 4H;

the stochastic is in oversold territory ( greater than 20),to see before considering a trade is %K crossing %D from above 80 (for a long trade).

Exit Position:

1)Stops are placed 5 pips behind the low or high of the entry bar;

2) Trailing Stop;

3) Profit Target: 60 pips EUR/USD, 70 pips GBP/USD 4H Time Frame, for Daily time frame 200pips EUR/USD , 250 pips GBP/USD (recommended);



4) When the price touches the middle or the upper and lower band of BB (20. 2) of 1H chart.

 

Example on January 28 at 16:00  the price breaks on chart 1H BB (20, 2) and BB (20.3). In chart 4H the price is between H BB (20, 2) and(BB20, 3)

 

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