Submit by JanusTrader 30/04/2012
Time Frame 4 H
Bollinger Bands(20, 2)
SVE Bollinger Bands (set default)
This strategy is simple
If you open an H4 chart and you insert the Bollinger Bands(20) indicator, if you observe the chart you will see that the bands are simply a Resistance and Support. The Upper band is a Resistance and the Lower Band is a Support. If you pay attention to the chart you will see that most of time the price hit the upper band then it retraces back to Lower Band, so how I trade is very easy, I wait till the price touches let’s say the upper band and closes under it (not above it) and wait till the candle is formed, when it finishes and the next candle opens under the previous Upper band then I enter a
Short trade with target = middle band.
Same thing when it touches the Lower band and the candle closes above it, and the next candle opens above the previous Lower Band then I go Long with Target = middle band.
Other condition for trade is
for Buy SVE Bollinger Bands crossed from bottom to Top Red Band
for Sell SVE Bollinger Bands crossed from Top to Bottom Green Band
Stop Loss on the previous swing.