Forex Momentum Reversal Bollinger Bands Trading Strategy
Forex Momentum Reversal Bollinger Bands Trading Strategy;
Momentum Reversal with Bollinger Bands Strategy is a classic strategy with MT4 momentum indicators. The purpose of this trading system is find the condition for reversal trading when the price is out the Bollinger Bands.
Time frame 5 min or higher.
Currency pairs: EUR/USD, EUR/CHF, EUR/GBP, USD/CHF, AUD/USD, USD/CAD, GBP/JPY, GBP/USD, NZD/USD, USD/JPY.
Bollinger Bands (period 50, deviations 2.0),
CCI RSI indicator (CCI 14, RSI 8, RSI long 50 + RSI short 50 -),
RSI color (10 period).
Trading Rules Momentum Reversal with Bollinger Bands Strategy
Buy
Price out the low Bollinger Bands.
When the price come back in the Bollinger Bands waith the trigger long of the CCI-RSI and RSI.
Place initial stop loss on the previous swing low.
Make profit with predetermined profit target that depends by pairs, or at the middle band of BB.
Sell
Price out the upper Bollinger Bands.
When the price come back in the Bollinger Bands waith the trigger short of the CCI-RSI and RSI.
Place initial stop loss on the previous swing high.
Make profit with predetermined profit target that depends by pairs, or at the middle band of BB.
Disadvantages: in the strong trend this trading system can generate false signals.
Advantages: in range market and medium trend works good.
In forex a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
For every trading strategy one needs to define assets to trade, entry/exit points and money management rules.
How to install Forex Momentum Reversal Bollinger Bands Trading Strategy?
- Download Forex Momentum Reversal Bollinger Bands Trading Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Load indicator on your chart
How to uninstall Forex Momentum Reversal Bollinger Bands Trading Strategy?
To shut down an indicator, one has to remove it from the chart. At that, its drawing and recalculation of its values will stop. To remove an indicator from the chart, one has to execute its context menu commands of “Delete Indicator” or “Delete Indicator Window”, or the chart context menu command of “Indicators List – Delete”.
