Initially, I came across this strategy with the recommendations of the M5, but it was dangerous because signals are not always confirmed twist, but still can be caught early. In general, test, test, write your impressions
RSI and Bollinger Bands Trading System is a multi-currency, and allows you to capture the peaks and troughs of the market, which in turn gives them the potential to earn a recommended time frame - H1
We determine the daily twists using:
1) a combination of three sets of indicator Bollinger - Bollinger Bands (20) with deviation 1 Standard Deviation, 2 Standard Deviation, 3 Standard Deviation.
2) and oscillator RSI (14) levels 30 and 70.
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We will enter into a contract at a time when the RSI reaches overbought (above 70) or oversold (below 30) on the market. After the appearance of this signal, we will look for an opportunity to make a deal at the end of the market.
With three sets of Bollinger bands, we will determine the point of exhaustion. The main reason why we use these three groups of indicator Bollinger, is that they will help us to identify the end of the movement, along with the degree of ability to roll back to the market.
If the cost to third Bollinger band, this is a signal that she is in "extreme zone." Once you move away from the group 3 standard deviation Bollinger band between 1st and 2nd Bollinger Band indicator, then you already know that currencies at present has reached its endpoint and enters the phase reversal.
The main requirement is to have at least one contract candle closed between 2 and 1 standard deviation Bollinger.
Enter into a contract to purchase, if:
First RSI (Relative Strength Index) is below its level 30.
Second Price to third Bollinger (3 Standard Deviation)
Third After that, candle H1 increased the area 3SD-2SD Bollinger band in the 2 Standard Deviation-1 Standard Deviation.
4th It was only after one candle closes within range Bollinger 2 Standard Deviation-1 Standard Deviation, 2 equal sign a contract to buy at market price.
5th Place a stop-loss of 10 points below last local minimum.
6th Profit target set at a distance from the stop-loss for one transaction.
7th As soon as the first profit target is reached, move stop loss 2 contract breakeven. And if you decide to use a universal trailing stop.
7th The second profit target - level 2 upper Bollinger band.
Consider an example of a pair EURUSD:
First Price reached third Bollinger and oscillator RSI fell below its level 30
Second Hourly candle into the 2 Standard Deviation -1 Standard Deviation Bollinger opening contract purchase price 1.1884
Third Stop-loss set at 1.1862 to 22 points, respectively, and profit 1 is 22 points.
4th 1 close the deal for profit 1.1906, move stop loss breakeven
5th Close 2. trading position of 1.1939 (profit: + 55 pips)
