704# Extreme overbought - oversold with Bollinger Bands
Extreme Reversal Trading
Bollinger Bands with HLC Trend
Submit by Maximo Trader
Extreme overbought - oversold with Bollinger Bands is a reversal technique based on price excursions on the Bollinger Bands but with a slower setting. Then the entry signal is given by the HLC Trend. This technique is also great for scalping on synthetic pairs, but is suitable for all time frames.
Setup Strategy
Time Frame 5 minutes or higher
Currency pairs EUR-USD and synthetic pairs such as AUDNZD, EURGBP and others.
Platform metatrader 4
High profitability.
Metatrader 4 Indicators
Money management indicator.
OHLC HA indicator.
Bollinger Bands (30 periods -3.0 deviation)
Below the main chart
HLC Trend.
Trading rules Extreme overbought - oversold with Bollinger Bands
Buy
The price touches or breaks the lower band.
From now on only buy trade until the price touches or breaks the opposite band.
Open trade when the white line of the HLCTrend crosses the blue line upward or when the price crosses upward the middle line of Bollinger Bands.
Sell
The price touches or breaks the upper band.
From now on only sell trade until the price touches or breaks the opposite band.
Open trade when the blue line of the HLCTrend crosses the white line upward or when the price crosses downward the middle line of Bollinger Bands.
Exit position
Place initial stop loss below/above the previous swing high/low.
Profit target minimum ratio stop loss 1:1.15.
Examples of trades
