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 borders 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:

Bollinger Band Squeeze Reversal System channel trading strategy
Bollinger Band Squeeze Reversal System Trading Strategy Template

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
Bollinger Band Squeeze Reversal System channel trading strategy
Examples of long deals

Signals indicating the opening of a short position (sale)

  1. There was a bounce of the price from one of the three upper limits of the Bollinger Band
  2. The red moving average crosses the average from top to bottom
  3. Stop Loss is put over the nearest local maximum
Bollinger Band Squeeze Reversal System channel trading strategy
Examples of short trades

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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