Bollinger Band Squeeze Reversal System channel trading strategy
Trading strategy Bollinger Band Squeeze Reversal System - is a vivid example of a channel trading strategy, the main idea of which is to trade on a rebound from one of the boundaries Bollinger Bands.
Input parameters
- Currency pairs: any.
- Timeframe: M30 and higher.
- Bidding time: any.
- Risk Management: After calculating the stop loss, choose this lot sizeto risk no more than 2-5% of the deposit per trade.
Used indicators
- Bollinger Bands (120, 1);
- Bollinger Bands (120, 2);
- Bollinger Bands (120, 3);
- Bollinger Band Squeeze;
- Exponential Moving Average (4);
- Exponential Moving Average (8).
Installing indicators and strategy template
- Unpack the archive with templates and indicators
- Copy the indicators to the folder MQL4 -> indicators
- Copy the template into the templates folder
- Restarting the terminal
- Open the chart of the desired currency pair
- Install a template named Bollinger Bands Rebound
The schedule should look like this:
Signals indicating the opening of a long position (buying)
- The price rebounded from one of the three lower Bollinger Bands (even better, if there was a double bounce)
- Red moving average crosses the average from bottom to top
- Stop-loss is placed under the nearest local minimum
Signals indicating the opening of a short position (sale)
- There was a bounce of the price from one of the three upper limits of the Bollinger Band
- The red moving average crosses the average from top to bottom
- Stop Loss is put over the nearest local maximum
Exit options
- Fixed take profit at a rate of 1:2 (twice the stop)
- Take profit at the nearest band boundary in the direction of the deal
Download Strategy Templates and Indicators
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