Power Bollinger Bands

Power Bollinger Bands

Bands Trading

Power Bollinger Bands is trading system based on the Bollinger Bands, Stochastic Oscillator and the patterns formation.

Time Frame 4H or daily.

The system works on any pair and Indices.

Setting Chart

Indicators:

Bollinger Bands: period 20, deviations 2;

Stochastic Oscillator (9, 3,3, with levels 80 and 20) that measures overbought and oversold of the price in the market.

Patterns: doji, engulfing pattern, inside candle, pin candle.

Trading Setup

When the Bollinger bands are far enough, wait that the price touches or broken a band, while the stochastic is in a state of overbought (above 80) or oversold (below 20).

Once both of these conditions are met we seek confirmation of entry into the market.

So looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Doji candle:the Doji is a candle indicating a period of indecision of the market the open and close have the same price. The Doji can be interpreted as a reversal signal if it appears with stochastics in overbought or oversold along with the price at the sides with Bollingher bands.

Engulfing pattern: an engulfing candle or also momentum candle, becaouse this pattern is a change of the momentum of the market. the first candle is completly engulfs by the following one.

Inside candle: the inside candle pattern is the complete opposite of the engulfing pattern, the second candle is formed completely inside the body of the previous candle.This pattern may provide a price breakout.

Pin Bar: the pin pattern , it shows huge emotion of the market indicating a potential sign of a reversal of the price.

Example: the buyers pushed the market high but failed to hold it so price returned back to around the open leaving a pin pattern or opposite the sellers pushed the market low but failed to hold it so price returned back to around the open leaving a pin pattern.

Engulfing formation and pin bar pattern are most reliable with a little 'practice you'll soon learn to recognize these patterns and can represent your success.

Trading Rules Power Bollinger Bands

Buy

Bollinger bands are far enough and the price touches or broken lower band,

Stochastic is oversold,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Sell

Bollinger bands are far enough and the price touches or broken upper band,

Stochastic is overbought,

Once both of these conditions are met, we seek confirmation of entry into the market,so looking for the following patterns: Engulfing pattern, Pin bar , Inside bar and Doji.

Exit position

Initial stop loss on the previous High/Low after move stop loss at the break even

make profit at the middle band or at the opposite band.

EUR/USD 4H chart

1. Sell signal with a pin bar confirmation and stochastic in overbought

2. Buy with pin bar pattern confirmation and stochastic in oversold.

3. Buy signal with inside bar pattern and stochastic in oversold.

4. Sell signal with inside bar pattern and stochastic in overbought.

5. Buy signal with inside bar pattern for confirmation and stochastic in oversold.

6. Sell signal with an engulfing bar pattern and stochastic in overbougth for confirmation.

7. Buy signal with a inside bar pattern and stochastic in oversold for confirmation.

USD/CAD daily chart

1. Buy with pin bar pattern confirmation and stochastic in oversold.

2. Sell signal with a pin bar confirmation and stochastic in overbought

3. Buy with pin bar pattern confirmation and stochastic in oversold. 

Double Bollinger Bands with Awesome

Double Bollinger Bands with Awesome

Bands Trading

Double Bollinger Bands with Awesomeis trading system a system of volatility trend following.

This system is profitable. It has good profitability and a good ratio Profit/ losses.

Time Frame 4H or higher.

Currency pairs: any.

Technical indicators:

Bollinger Bands (20, 2);

Bollinger Bands (20; 1);

Awesome (optional).

Candle pattern 1-2-3

Trading Rules

Buy

The candle closes above the Bollinger Bands 1 with the condition that the previous two

candles have closed within Bollinger Band 1 but above of the middle band (this condition setup is important).

Awesome with green bar is optional.

Sell

The candle's price closes below the Bollinger Bands 1 with the condition that the previous two candles have closed within Bollinger Band 1 but below of middle band (this condition setup is important) ..

Awesome  with red bar is opional.
Initial stop loss 10 pips below/above middle band.

Minimum Profit Target 1.3 initial stop loss.

For a conservative trading only trade in the direction of the major trend.

Add a simple moving average of 100 periods.

Sell ​​

Lower bands of the BB1 ​​and BB2 <100 simple moving average.

The candle's price closes below the Bollinger Bands 1 with the condition that the previous two candles have closed within Bollinger Band 1 but below middle of the band.

Awesome red color is optional.

Buy

Upper bands of the BB1 ​​and BB2> 100 Simple Moving Average

The candle closes above the Bollinger Bands 1 with the condition that the previous two

candles have closed within Bollinger Band 1 above but of the middle band .

Awesome green color is optional.

Donchian Channels with 50 Simple Moving Average

Donchian Channels with 50 Simple Moving Average

Bands Trading

Designed to Trade Quick Momentum Moves

Best Suited for Day-Trading Forex

Select Time Frames / Any Market / Any Direction

Best Time Frames: 20, 30, 45, 60, 90, 120 min.

Learn the Strategy – Paper Trade First!

The Specialist’s Edge – Consistency

Indicators:

50-period Simple Moving Average (sma),

14-Donchian Channels.

Rules - Buys

TIME FRAMES: (Works best on 20, 30, 45, 60, 90, 120 min bars).

STRATEGY RULES:

1. Price must be above the 50-period sma.

2. Look to buy when the close is either at, or 1 pip below the high of the price bar. (SET UP BAR)

3. Either the SET UP BAR or the previous bar is the lowest low of the last 5 bars.

4. Enter to buy on the next bar only, if the price trades 1 pip above the SET UP bar’s high. (If price does NOT trade 1 pip higher on next bar, then negate the trade).

5. Place protective stop 1 pip below the low of the SET UP bar.

6. Sell (exit) on Range Extension of 200% and/or 300%.

Step 1

Price must be above the 50-period sma.

Step 2

Look to buy when the close is either at,or 1 pip below the high of the price bar. (SET UP BAR)

Step 3

Either the SET UP BAR or the previous bar is the lowest low of the last 5 bars.

Step 4

Enter to buy on the next bar only, if the price trades 1 pip above the SET UP BAR’S high.

(If price does NOT trade 1 pip higher on next bar, then negate trade).

Step 5

Place protective stop 1 pip below the low of the SET UP BAR.

Step 6

Sell (exit) on Range Extension of 200% and/or 300%.

Rules - Sells

TIME FRAMES: (Works best on 20, 30, 45, 60, 90, 120 min bars).

STRATEGY RULES:

1. Price must be below the 50-period sma.

2. Look to sell short when the close is either at, or 1 pip above the low of the price bar. (SET UP BAR)

3. Either the SET UP BAR or the previous bar is the highest high of the last 5 bars.

4. Enter to sell short on the next bar only, if price trades 1 pip below

the SET UP bar’s low. (If price does NOT trade 1 pip lower on next bar, then negate the trade).

5. Place protective stop 1 pip above the high of the SET UP bar.

6. Buy to cover (exit) on Range Extension of 200% and/or 300%.

Donchian Channels with 50 Simple Moving Average Sell

The Broken Wave Trading System

The Broken Wave Trading System

Bands Trading

The Broken wave is a classic trading system discretionary based on indicators of momentum, trend and volatility. This strategy requires practice.

Time Frame 15 min, 30 min, 60 min, 240 min.

Currency pairs majors.

Indicators:

Bollinger Bands (20, 2),

Simple moving average 10 period (close),

Simple moving average 20 peiod (close),

MACD (12, 26, 9),

PSAR Defaul Setting.

Buy trade

1 Wait for PSAR to form below price.

2 Chek that MACD histogram has crossed above the signal line.

3 Chek that the Bollinger Bandsare starting to widen or the price broken the upper band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed above the 20 SMA.

5 When a candle has closed above the 10 SMA and SMAs, enter a buy trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close above both Smas.

6 Set a stop loss under recent swing low up to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

Sell Trade

1 Wait for PSAR to form above price.

2 Chek that MACD histogram has crossed below the signal line.

3 Chek that the Bollinger Bandsare starting to widen or the price broken the lower band.

While this step is not essential, if the condition is met you will usually find the signal to be stranger.

4 The 10 SMA and 20 SMA are starting to convergewnce (move closer toghether) or the SMA 10 has already crossed below the 20 SMA.

5 When a candle has closed below the 10 SMA and SMAs, enter a sell trade. 10 SMA does not need to cross the 20 SMA at entry, but price must close below both SMAs.

6 Set a stop loss above recent swinghigh to a maximum of 25 pips. Move your stop loss breakeven when price goes 10 pips in your favor. Optional -when price gets 10 pips in profit, set a trailing stop of 15 points.

 Broken Wave trading system

Broken Wave trading system

Bollinger Bands as Support and Resistance

Bollinger Bands as Support and Resistance

Bands Trading

Bollinger Bands as support and reistance is a trading strategy very simple it's based on the Bollinger Bands and the RSI. This trading system it'very good.

Time Frame 4H

Currecy pairs any.

Indicators:

Bollinger Bands (20, 2);

RSI (35 period) with level (40-60).

If you observe the Bollinger bands are as Support and Resistance. The upper bands are as a dynamic line of resistance and the lower bands are as a dynamic line of support. If you observe the forex charts with these bands you can see that the price for most of the time swings into the bands and when touches the upper or lower band retraces back. This is the principle of this strategy.

To determine the best entry I added RSI indicator of strength.

Buy

Wait that the price touches the lower band and close above the band, if the RSI is between the levels 40-60 open a long position at opening of the nex bar.

Sell

Wait that the price touches the upper band and close below the band, if the RSI is between the levels 40-60 open a shor position at opening of the nex bar.

Profit Target 80-120 pips depends by currency pairs or meke profit on the middle bands..

Initial Stop loss 50 – 70 pips above/below the bands.

This Trading system is also good for trading with binary options high/low.

Expiry time 4 candles.

Bollinger Bands as Support and Resistance

Bollinger Bands as Support and Resistance

This strategy has been sent to Joy22.

Bollinger Bands Scalping

Bollinger Bands Scalping

Bands Trading

Bollinger Bands Scaping is a forex strategy with a good profitability around the 80%.

Time frame 15 min , 30 min.

Currency pairs: Majors (EUR/USD, AUD/USD, USD/CHF, GBP/USD, AUD/JPY, NZD/USD, USD/CAD).

Indicators:

Bollinger Bands (20:2);

Stochastic oscillator (5,3,3).

Buy

When price out under lower band line of Bollinger Bands wait that the price will come back in the band.
When the first candle close in Bollinger Bands if the stochastic oscillator crosess upward
open order buy with profit target 10 pips.

Sell

When price out above upper band line of Bollinger Bands wait that the price will come back in the band.
When the first candle close in Bollinger Bands if the stochastic oscillator crosess downward
open order sell with profit target 10 pips.

Bollinger Bands Scaping

Initial stop loss 15-20 pips.

5 min Bollinger Bands Intraday System

5 min Bollinger Bands Intraday System

Bands Trading

On a chart of 5-minute bars for a stock, plot out the 10-bar moving average and the Bollinger bands for 2 standard deviations on either side of the average. Then apply the following system:

Buy when the stock falls 3 percent below its lower band. Hold until at least the end of the 5-minute bar where the stock was bought.

Sell when the stock hits a 1 percent profit target or at the end of the second bar after the stock was bought.

The critical issue is how to keep track of all the stocks one is interested in. Before the open, use charting software such as eSignal or TradeStation, or Wealth-Lab (which is the software I use for all of my testing) to identify the Bollinger band levels for each stock. It is then possible with all of these packages to set up alerts and even interface with direct-access brokers, such as Interactive Brokers or Cybertrader, to actually make the trades automatically.

The key in all of these examples is time. Basically, the market has such an

extreme and quick selloff in order to trigger this system that the stock ei-

ther bounces back immediately or flounders about. If the latter, then we

promptly get out since we are only looking for our profit target within the

ten minutes following the entry bar.

ORCL, 5/20/2002, 10:30 AM

Merrill Lynch, in a post-Blodget fury of tech pessimism, reiterated a broads weeping recommendation the morning of May 20, 2002, to sell technology stocks into any strength. While their prediction proved mildly prophetic for all of two months, anybody short technology at May 2002 levels would have been killed over the following year. Nevertheless, the panic to get out of the popular tech issues, for instance ORCL, was enough to trigger a signal on ORCL at 10:30 AM at 8.73 (1). In a brief flurry of selling, it hit 3 percent below its lower band, which it had been steadily walking down all morning. Buying at the critical level and holding until the open of the next 5-minute bar would have resulted in a quick 3.3 percent profit with the sale at 9.02.

5 min Bollinger Bands System

MSFT, 4/3/2000

Many of examples occur close to the open of the day, which is the time when there is the most volatility and also the most panic. The market has had all night to hear and absorb news, and thus the open is when the most participants at once are acting on that news.

Look at Figure 2. On April 3, 2000, MSFT gapped down and triggered signals for two five-minute bars in a row, at 9:30 AM at the open and 5 minutes later at 9:40 AM . The first signal was sold off at the close of the second bar at 47.69 for a 1 percent profit, and the second signal, which was bought at the open of the second bar at 47.44, was promptly sold at 47.91 for a 1 percent profit.

5 min Bollinger Bands Intraday System

AMAT, 11/12/01

On the morning of November 12, 2001, a plane crashed near Kennedy air port. The crash was not apparently an act of terrorism but nobody knew that at the time. Futures spiked lower and the tech stocks, which were hit hardest during the week after September 11, 2001, suffered a minicrash im-

mediately prior to the open. Being alert and capitalizing on the panic would have enabled one to buy AMAT, which triggered a buy signal at its premarket low at 18.20 when it hit 3 percent lower than its lower Bollinger band (Figure3, . Holding to the close of that 5-minute bar would have enabled one to sell immediately at 19.33 for a 6.15 percent profit.

5 min Bollinger Bands Intraday System

 

5 Min BB System, 2/2/02–6/30/03 results

 

You can apply this system also at the Forex Majors (with 20-30 pips outside the bands).