Trend Bouncer with Bollinger Bands ~ forex market times open
Trend bouncer forex strategy is a trend following system that use the Bollinger Bands, the purpose of this trading system is to find the retracement during a trend and get in to trade with the trend. In an uptrend, you will fi nd that, at a certain point in time, prices will pull back or retrace before continuing with the upward movement. Similarly for a downtrend, prices will retrace upward against the downward momentum before continuing their way down again. Experienced trend traders usually wait for the retracement to happen before taking a trade in the direction of the trend. This is how the trend bouncer strategy came about. The Bollinger Bands indicator provides an objective way of identifying the ebb-and-flow movement of a trend. Since this is a trend strategy, we have more than one profit target. In fact, we have two specific profit levels for this strategy. The strategy differs slightly from the trend rider in that there are specific levels for trend bouncer traders to exit with profits.
Time Frame H1 and H4
Currency pairs: Majors (example EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD,NZD/USD.
Indicators:
Bollinger Bands (moving average MA 12, deviation Dev2);
Bollinger Bands (moving average MA 12, deviation Dev4).
Trend line tool.
When the candlestick hits the upper band of Bollinger Bands (MA 12, Dev 2), it indicates an upward mmentum, and we prepare to go long. As prices retrace back to the MA 12
(the center line of the Bollinger Bands), a significant retracement has occurred, and it is a good time to enter for a long trade.
When the candlestick hits the lower band of the Bollinger Bands (MA 12, Dev 2), it indicates a downward momentum, and we prepare to go short. As prices retrace back to the MA12 (the center line of the Bollinger Bands), a significant retracement has occurred, and it is a good time to
enter for a short trade. This trend strategy exits at two different targets.
Buy
Find an up trend and draw trend line.
Wait for the price to hit the upper band of the first Bollinger Bands (MA 12, 2) and retrace back down to the center MA 12.
When the price touches MA 12, enter for a long.
When the trend line is broken to downward no longer buy.
The stop loss is the lower band of the second Bollinger Bands (MA 12, 4).
The trade will have three profit targets with risk to reward ratios of 1:1, 1:2. |
| Trend bouncer .with bollinger bands |
Sell
Wait for the price to hit the lower band of the fi rst Bollinger Bands (MA 12, Dev 2) and retrace back up to the center MA 12.
When the price touches MA 12, go for a short.
The stop loss is the upper band of the second Bollinger Bands (MA 12 Dev 4).
When the trend line is broken to downward no longer sell.
The trade will have three profi t targets with risk to reward ratios of 1:1, 1:2.
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Trend Bouncer with Bollinger Bands Quiz
Trend Bouncer with Bollinger Bands Quiz
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