Your support is fundamental for the future, to continue sharing the best free strategies and indicators.


30# Bollinger Bands and CCI Divergence Trading System

Divergence with Bollinger Bands and CCI

 

Submit by mike Trader- by Toshko Raychev 17/03/2014-

 

Bollinger Bands and CCI Divergence Trading system is an reversal forex strategy.

Currency pairs: Major.

Time Frame 30 minute and 240 minute.

 

Forex Indicators:

1. Bollinger Bands

2. 5 period Smoothed Moving Average set to High

a. Red

3. 5 Period Smoothed Moving Average set to Low

a. Blue

4. Fibonacci Pivots THV

Indicator Sub Window 1

1. 21 period CCI indicator

a. Light Sea Green

b. Thickness of 2

2. 21 Period Bollinger Bands indicator

a. Shift: 0

b. Deviations: 2

c. Yellow

d. Apply to First Indicator’s Data

3. 5 Period Smoothed Moving Average indicator

a. Red

b. Thickness of 2

c. Apply to First Indicator’s Data

Indicator Sub Window 2

1. Volumes indicator

a. Value Up: Green

i. Thickness of 2

b. Value Down: Red

Thickness of 2

 

Entry Rules

Sell Trade Entry Rules

1. Check the Trend on the 4 hour chart. If the SMMA challel is below the Middle Bollinger Band,

the market is in a down trend.

2. Next, go to the 30 minute chart and wait for price to approach a Resistance area.

3. If there are no price action patterns to trade, check to see if there is divergence present between Price and the CCI/BB/SMMA window on the 30 minute time frame.

4. If either of the above criteria are met, check that there is high volume, that the Volume bar is forming significantly higher or consecutively higher peaks.

5. If these conditions are met, enter a new trade position as soon as the candlestick pattern or divergence pattern has completed.

6. Set your stop loss above the most recent swing high.

7. Trail your stop using the SMMA channel or middle Bollinger Band. You can also exit manually when the Bollinger Band on the CCI (first indicator window) begins to contract.

Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Trading System

 

Buy Trade Rules.

1. Check the trend on the 4h chart. If the SMMA channel is above the middle Bollinger Band, the market is in an uptrend.

2. Next, go to the 30 minute chart and wait for price to approach a Support area.

3. If there are no price action patterns to trade, check to see if there is divergence present between Price and the CCI/BB/SMMA window on the 30 minute time frame.

4. If either of the above criteria are met, check that there is high volume, that the Volume bar is forming significantly higher or consecutively higher peaks.

5. If these conditions are met, enter a new buy trade position as soon as the candlestick pattern or divergence pattern has completed.

6. Set your stop loss below the most recent swing low.

7. Trail your stop using the SMMA channel or the middle Bollinger Band. You can also exit manually when the Bollinger Band on the CCI(first indicator window) begins to contract.

Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Trading System
Bollinger Bands and CCI Divergence Tradi
compressed file archive 260.9 KB

Write a comment

Comments: 0