103# Day Trading GBP/JPY

Submit by Joy22

The Rules

Currency to be traded: GBP/JPY

Chart timeframe: 5 minutes

RSI setting: 14

Bollinger Bands setting: 20,2,SMA

Step 1

We start viewing the 5 min GBP/JPY at exactly 00:00. We wait for

the RSI indicator to either reach a reading of 70 or a reading of 30.

The first reading that is reached will dictate if the trade is going to

be a long trade or a short trade. If RSI reaches first a reading of 70

the trade will be short. If RSI first reaches 30, the trade will be

long.

Step 2

For short trade: we wait for market to penetrate lower part of

Bollinger band by 3 pips and initiate trade at that same exact price.

For long trade: we wait for market to penetrate upper part of

Bollinger band by 3 pips an initiate trade at that same exact price.

Step 3

We immediately place out stop loss at 20 pips from entry.

We place out take profit order at 50 pips from entry price.

Examples

We will quickly go over this first trade example so you can see

how the trade worked out from start to finish on the same chart. On

the next trade example I will be more specific in my explanation.

A: 00:00, start time.

B: RSI reaches 30 first. This means we will be looking for a long

trade.

C: We where looking for market to penetrate upper part of

Bollinger band by 3 pips and it did at 207.53. Long trade is

triggered.

D: Stop loss is immediately placed 20 pips from entry at 207.33.

E: Profit target of 50 pips is reached at 208.03

So, we can see that at point A the RSI reaches 70. This means that

we will be looking for a short trade. If it was the opposite and the

RSI would have reached 30 first we would have been looking for a

long trade.

At this point the RSI does not concern us anymore and what

matters now is the market price and the Bollinger band. We are

now waiting for the market to penetrate the lower part of the

Bollinger band by 3 pips, and it does so at point

B. We enter ashort trade at 208.72 and immediately place our stop loss 20 pips from entry or 208.92 (point C). After stop loss is placed we either wait for the market to reach our profit objective of 50 pips or we enter a take profit order with our forex broker. At point

D we cansee the market easily reached out profit objective and the trade turned out to be a 50 pip winner.

Bollinger Bands Forex Strategies

1#Deviation Bands System

2# Cross Midlle band

3# Bollinger Bands and 123

4# Bollinger Bands, and CCI

5# Bollinger Bands Pin Bar and Real MACD

6# Bollinger Bands Reversal

7# Bollinger Bands Trend

8# Bollinger Bands Multitimframe

9# Bollinger Bands and the Gimmees bar

10# Bollinger Bands Breakout

11# Bollinger Bands Breakout and RSI

12# Bollinger Bands and Fibonacci Retracement

13# Bollinger Bands Bounce

14# Bollinger Bands, RSI and Stochastic 

15# Bollinger Bands and ADX 

16# Bollinger Bands with ADX, RSI and Two MA

17# Bollinger Bands with Equidistant Channel 

18# Bollinger Bands and RSI Divergence 

19# Power Bands 

20# Bollinger Bands and Stochastic

21# Bollinger bands trend

56# Double RSI - Forex Strategies - 

40# MACD, RSI, 50 Ema and Pivot Points - 

8# RSI and Stochastic - 

14# RSI and Two EMA - 

37# Dynamic Zone RSI - 

RSI Metatrader Indicator - 

212# LWMA and RSI - 

12# Ema, stochasticand RSI - 

72# EMA's, RSI and Stochastic - 

126# MACD With Laguerre RSI 

60# RSI,ATR, and SMA - 

108# EMA's and RSI -

321# RSI Filter -  

81# RSI Trend Following Strategy - 

13# RSI and WMA - 

120# Trading System, EMA RSI Trend - 

6# Pivot and RSI Divergence - 

26# RSI and MA Cross inside Bollinger Bands -

74# RSI, SMA and ATR -  

10# Bollinger Bands, RSI and ADX - 

30 min day Trading