375# Rubber Band and Bollinger Bands Trading System
Submit by JamesUK 29/10/2012
touch the band. I've always used the default settings of two standard
that, or not. It's not that big of a deal (which proves that this method is
The above chart is a 4 hour chart of the EUR/USD. With arrows and
numbers, I've highlighted the trades. Let's go over them.
1. This trade would've taken a while but would've been profitable.
2. Stopped out.
3. Great trade.
4. Another great trade.
5. Stopped out.
6. First chance to enter this trade.
7. Second chance to enter this trade. It would've ended at break-even.
8. Nice trade.
9)And the last trade is great.
Two losses, one break-even, and six winners total. Not bad. Now let's look
at some of the trades that weren't taken, and I'll explain why they weren't
valid signals.Yes the green histogram poked out of the black line. However, to make a
valid signal the price would have to touch the upper band or go through it.
Remember, you only have a signal to trade if you get a tag of the upper band
and the green pokes through the black line to the upside, or the price tags the
lower band and the green pokes through the black to the downside.
Here is another example of the black line being at zero causing the signal to
Share your opinion, can help everyone to understand the forex strategy.