Fading trading strategy
Fading trading strategy - indicator system for trading on stock exchange markets, including . The strategy is intraday and multicurrency, also using protective orders to limit losses. The indicators used are standard for MetaTrader 4 terminal.
Marketplace: Forex;
Currency pairs: various;
Timeframe: H1;
Indicators : Bollinger Bands - period 20, deviation 1, shift 0; Bollinger Bands - period 20, deviation 2, shift 0; Bollinger Bands - period 20, deviation 3, shift 0; RSI - 14, levels 30 and 70;
Strategy: intraday;
Protective orders: StopLoss, TakeProfit.
Trading conditions of the Fading strategy
Terms and conditions of the purchase transaction
1. RSI indicator should be in the oversold zone.
2. The market should touch the lowest Bollinger Bands line.
3. Wait for the candle to close near the middle line of Bollinger Bands (in red on the picture).
4. Entering the market.
Terms and conditions of the sale transaction
1. the RSI indicator should be in the overbought zone.
2. The market should touch the highest line Bollinger Bands.
3. Wait for the candle to close near the middle line of Bollinger Bands (in red on the picture).
4. Entering the market.
Protective orders of the Fading strategy
Take Profit is set at your discretion. You can set it to the level of the highest/bottom line of Bollinger Bands.
Stop Loss equals Take Profit.