Bollinger Bands strategies in Forex trading

Bollinger Bands is one indicator that several traders tend to own on their charts albeit they're truly analyzing different technical analysis indicators and not extremely Bollinger bands.

Let's see the way to United States of Americae this common indicator to urge us additional winning trades, in the main with a mix of different technical indicators like random generator.

Bollinger bands indicate the volatility of market and therefore continually|we must always} always seek for the modification in volatility. The modification continuously indicates some major move and that we ought to catch that up early. thus what we'd like to seem for is that the following:

1) Bands ar widening: Volatility is increasing and more move may be anticipated within the current direction. thus we'd like to confirm that we tend to ar correct concerning this direction.

2) Bands ar tightening: Volatility is decreasing. It may be like silence before the storm and a serious escape could also be on the manner. however escape during which direction?

1a) Widening Bollinger Bands (Bullish):

This pattern typically would occur when some band alteration with low volatility shorter candles with vary movement)

- The bands ar widening with the higher band moving sharply top side and also the lower and moving sharply down.

- the worth action is moving upwards.

- The recent candle sticks ar longer than the previous candlesticks

Action:

- Check if RSI (Relative Strength Index) is within the vary of thirty to fifty and rising.

- you will conjointly check if ADX is rising towards twenty five/beyond 25 and +DI crossing -DI.

- Check if Slow random is crossing the signal line upwards (bullish).

- If all on top of ar happening then we are able to expect an additional upward move of the worth. it'll be safer and therefore higher to attend for two or three additional candles to verify the trend then take a get position. It conjointly happens that before an additional upward move there could also be some downward correction and also the sit up for 2/3 candles might facilitate in increasing the gains.

If ADX doesn't move on top of twenty five then the upward move could also be restricted and therefore the profit taking are restricted

1a) Widening Bollinger Bands (Bearish):

This pattern typically would occur when some band alteration with low volatility shorter candles with vary movement)

- The bands ar widening with the higher band moving sharply top side and also the lower and moving sharply down.

- the worth action is moving down.

- The recent candle sticks ar longer than the previous candlesticks.

Action:

- Check if RSI (Relative Strength Index) is within the vary of fifty five to seventy five and falling.

- you will conjointly check if ADX (Average directional Index)is rising towards twenty five/beyond 25 and -DI crossing +DI.

- Check if Slow random is crossing the signal line down.

- If all on top of ar happening then we are able to expect an additional downward move of the worth. it'll be safer and therefore higher to attend for two or three additional candles to verify the trend then take a sell position. It conjointly happens that before an additional downward move there could also be some upward correction and also the sit up for 2/3 candles might facilitate in increasing the gains.

If ADX doesn't move on top of twenty five then the downward move could also be restricted and therefore the profit taking are restricted.

2a) alteration Bollinger bands (bullish move):

The pattern happens with a chronic sideways move with less volatility (short candlesticks)

- Check if there ar minimum a pair of continuous optimistic candlesticks (green) that ar longer than previous a pair of to three candlesticks.

- Check if RSI (Relative Strength Index) is within the vary of thirty to fifty and rising.

- you will conjointly check if ADX is rising towards twenty five/beyond 25 and +DI crossing -DI.

- Check if Slow random is crossing the signal line upwards.

- If all on top of ar happening then we are able to expect AN upward escape. it'll be safer and therefore higher to attend for two or three additional candles for confirmation before taking a get position with a red candle.

If ADX doesn't move on top of twenty five then the upward move could also be restricted and therefore the profit taking are restricted

2b) alteration Bollinger bands (bearish move):

The pattern happens with a chronic sideways move with less volatility (short candlesticks)

- Check if there ar minimum a pair of continuous pessimistic candlesticks (red) that ar longer than previous a pair of to three candlesticks.

- Check if RSI (Relative Strength Index) is within the vary of forty to sixty and falling.

- you will conjointly check if ADX is rising towards twenty five/beyond 25 and -DI crossing +DI.

- Check if Slow random is crossing the signal line down.

- If all on top of ar happening then we are able to expect a downward escape. it'll be safer and therefore higher to attend for two or three additional candles for confirmation before taking a sell position with a red candle.

If ADX doesn't move on top of twenty five then the upward move could also be restricted and therefore the profit taking are restricted.

3a) Continuation of uptrend when correction

During AN current uptrend the worth might reverse to the center band or perhaps the lower band.

- Check if RSI (Relative Strength Index) is within the vary of thirty to fifty and rising.

- you will conjointly check if ADX is on top of twenty five and +DI over -DI.

- Check if Slow random is over the signal (bullish configuration).

- With all on top of we are able to expect a continuation of the uptrend. it'll be safer and therefore higher to attend for two or three additional candles to verify that the recent move was simply a correction then take a get position

3b) Continuation of downtrend when correction

During AN current downtrend the worth might reverse to the center band or perhaps the higher band.

- Check if RSI (Relative Strength Index) is within the vary of fifty five to seventy five and falling.

- you will conjointly check if ADX is on top of twenty five and -DI on top of +DI.

- Check if Slow random is below the signal (bearish configuration).

- With all on top of we are able to expect a continuation of the downtrend. it'll be safer and therefore higher to attend for two or three additional candles to verify that the recent move was simply a correction then take a sell position.