- Recommended DC forex with Metatrader 4
But in practice the trade with the trend is much more difficult than it appears in the study of theory. Therefore, all that we need for successful trading - the definition of minimum and maximum, as well as an effective filter that helps to identify the transaction at the top and at the bottom.
In the forex strategy, we consider the "inside day Bollinger bands", which tends to help objectively determine what is the maximum, and that - at least.
When you trade on Bollinger - it is that the price near the upper Bollinger band inidkatora considered high, and the price at the lower Bollinger band indicator is considered to be low. But just the fact that the price has reached the upper Bollinger band, does not mean that it is time to sell. Enough strong trends can 'move' on the band, and "eat" any forex trader's deposit, which is trying to buy 'low' prices in a falling trend, or enter into transactions to sell at a 'high' prices on an uptrend.
Therefore, our filter is to ensure that the trading signals generated on the purchase only if the candle following the one that came in contact with the Bollinger band, does not comply with a new high or a new low. That this type of candle is often called "a candle inside day".
The best time period to search for "inside day candle" - daily charts (D1), however, this forex strategy tends to also be applicable to the hourly, weekly or monthly charts. Promptness "inside days" with the indicator Bollinger bands increases the chance to predict the tops or bottom after the price reached a level of extreme. Usually, the more time passes, the less will appear such signals, but they will be much more significant.
Candlesticks and their patterns are our market psychology in this one point in the time interval. Of course, the "inner spark" is a range of low volatility. If in an uptrend market volatility starts to decrease, and the price is not able to show a new high (about what we said and a candle inside), then we can surely conclude that the strength of the trend is reduced and there is a chance for a reversal in the market. By connecting with the Bollinger band indicator, we guarantee the most, that we are going to trade reversal, concluding a deal to sell at high prices (the upper Bollinger band indicator) or by signing a deal to sell at low prices (lower Bollinger band indicator). Thus, we conclude a deal with a large probability of a reversal of the market - that gives us a chance to get big profits in forex.
In the forex strategy to use Bollinger bands with a simple moving average and period 20 (SMA 20). To take the big price move, let the currency pair to go through the 20-period the SMA, and only after etogoperemeschayte your stop loss with a moving average, closing a bargain at the close after the pair crosses the SMA again. For more insight - see the examples below.
Rules for entering into long positions on trade forex strategy "inside day Bollinger +":
1. Choose a currency pair to hit or come very close to the lower Bollinger band.
2. We look forward to closing the next candle and making sure that it at least above or equal to the low of the previous candle closed, and the maximum and less than or equal to the maximum of the previous closed candles. If these conditions are fulfilled, then open a buy position at the opening of the third candlestick.
3. The initial stop-loss should be raspolazhit a few pips below the low of the previous candle closed.
4. Physically move the stop-loss after the close of each new candle on the 20-period simple moving average SMA.
The rules for the conclusion of short trading positions on the forex strategy "inside day Bollinger +":
1. We select the currency pair to hit or strongly came close to the upper Bollinger band indicator.
2. We look forward to closing the next candle and making sure that it is at least equal to or above the minimum of the previous candle closed and the maximum it is also less than or equal to the maximum of the previous closed candles. If all the conditions are met that we conclude a deal to sell at the opening of the third candle.
3. The initial stop-loss is a few pips above the high of the previous candle closed.
4. Physically move the stop-loss on a closing on the 20-period simple moving average SMA.
Wednesday, January 6, 2016
Forex Strategy "inside day Bollinger +"
forex "inside day Bollinger +" strategy is designed for traders who trade only with the trend, so that they can earn large sums of money in just a few inmates profitable trades, but at the same time wanting to accurately determine the trend reversal.
