3 period Bollinger Bands Strategy

Forex Strategy - 3 period Bollinger Bands Strategy

Forex Strategy "3 period Bollinger Bands strategy" is a modification of the famous trading strategy "three screen" and the old man trading system. This forex trading strategy is very simple to use and is very effective. Work forex strategy, we need to open 3 timeframe, each in its own window: H4, H1 and M5, and get a confirmation signal to open the position of all windows in one direction. I recommend to use this forex strategy on any currency pairs.

To get trading signals we use moving averages and Bollinger bands.

Schedule:

The first window

Order of construction:

Set a time frame H4. Add moving average EMA 20 and close prices.

Interpretation:

Open position in the direction that points EMA (20), as follows:

Debt - If the price is above EMA (20).

Short - If the price is below the EMA (20).

For more information on moving average can be found at this link.

The second window (main)

Order of construction:

Set timeframe H1. Add three moving average EMA (5), EMA (10) EMA (15) close to the price.

Interpretation:

Open positions in the moving average, as follows:

Debt - If the EMA (5) crosses the EMA (10) EMA (15) from the bottom up.

Short - If the EMA (5) crosses the EMA (10) EMA (15) from the top down.

Third Screen

Order of construction:

Set a time frame M5. Add Bollinger Bands (select default settings, you can adjust if necessary.)

Interpretation:

Once the signals appear and matched to the windows H1 and H4 - moving window (M5) - opens the appropriate position.

Debt - If the price touches the bottom of the price channel Bollinger (in this case, if the price is between the center line and bottom Bollinger), or middle line (in this case, if the price is between the middle line and the top Bollinger).

Short - If the price touches the upper Bollinger band of the price channel (in this case, if the price is between the middle line and the top Bollinger), or middle line (in this case, if the price is between the center line and bottom Bollinger).

For more information on Bollinger bands can be found at this link.

Limit losses

Long - Stop loss is placed below the local minimum prices.

Short - Stop loss placed above the local maximum price.

Position

Long - When the moving average EMA (5) crosses the moving average EMA (10) EMA (15) from the top down.

Short - When the moving average EMA (5) crosses the moving average EMA (10) EMA (15) from the bottom up.

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Take Profit is not installed. You can use the trailing stop is not lost profits.