Forex Overbought Oversold Bollinger Bands Trading Strategy
Forex Overbought Oversold Bollinger Bands Trading Strategy;
Bollinger Bands are calculated by taking the Standard deviation of a moving average over a given period of time. Used to measure when an financial trading instrument is
Oversold or Overbougth.
Upper band is overbougth, Lower band is Oversold.
Standard formuka is:
2 Standard deviation and 20 period moving average.
In this Bollinger Bands Stategy
look for momentum trend:
1) Buy when the trend is Oversold
-
Short when the trend is Overbougth
Markets: any.
How to this:
Apply a longer term Moving Average;
Time frame 30 min or higher;
Bollinger Bands (20 periods,2 Standar deviation);
Stochastic indicator (5,3,3).
How Bollinger bands Overbought and Oversold forex strategy works
Buy when the price is oversold, Stochastic indicator also in oversold and crosses upward but also above the 34 period moving average smoothed.
Short when the price is overbougth, Stochastic indicator also in overbougth and crosses downwward but also below the 34 period moving average smoothed.
Exit when the position trades back midllle band, at the predetermined profit target,
or exit when the price close a bar below/above the moving average.
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 Overbought Oversold Bollinger Bands Trading Strategy?
- Download Forex Overbought Oversold 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 Overbought Oversold 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”.
