Double Bollinger Bands Trading Strategy without defeat

Double Bollinger Bands Trading Strategy without defeat

Double Bollinger Bands Strategy Set-up

 
This strategy only uses two Bollinger Bands (BB) indicators with different parameter settings for each deviation. 

The basic principle of using this strategy is to detect trends from changes in price movements after consolidation from the band to the upper or lower band BB indicators. This strategy is not only used for trending conditions or it can also be applied in sideways or ranging conditions.
  

 Use of the Double Bollinger Bands Strategy

>Signal to buy

To open a buy position, you must wait until the closing price of the candlestick bar is above the upper band curve of BB whose deviation. The next condition is the closing price of the two candlestick bars which previously had to be below the upper band curve of the BB indicator whose deviation. These conditions indicate market participants agreed to continue the uptrend after the previous consolidation. For example in USD / JPY daily
 
 
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 On the chart above it appears that the price of the No. 3 candlestick bar closes above and the upper band curve of the BB indicator whose deviation is No. 1, and the prices of the two candlestick bars before it 1 and 2 close below the upper band curve of the BB indicator. If this is the case then you can open long positions at the closing price of candlestick bar no. 3.

 

Determination of Stop Loss and Target Profit levels 

Stop Loss can be determined at the lowest level of the candlestick bar and the target profit can be determined at least the same as the Stop Loss distance, or not allow greater effort to risk / reward ratio, or move the Stop Loss level if it has reached breakeven.

>Signal to sell

To find out short positions, you must wait until the closing price of the candlestick bar is below the lower band curve of BB whose deviation.

 
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Maximize Profit with the Double Bollinger Bands Strategy  

 
With the same position strategy as the target profit from the previous position (at least equal to the stop loss distance or more), while the second position profit target is not determined because it is assumed the price will move with a strong trend after consolidation. If you profit from the first position has been reached, move the stop loss level from the second position to the breakeven level and hold that position.
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 Time Frame Trading Used

Double bollinger Bands are used on daily time frames or 4 hours. But basically, this strategy can be applied to all time frame trading, it's just that the higher the time frame will be more accurate.

 

 
Double Bollinger Bands Trading Strategy without defeat Double Bollinger Bands Trading Strategy without defeat Reviewed by Kampus Seo on March 25, 2020 Rating: 5

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