System Messages

This forum is for members of the Apiary Investment Fund. To learn more about how to get involved,
sign up now for a 14 day free trial or fill out the form below and preview the training right now!

Bollinger Band Counter trend trade

 
Back to Forums
 
 
rick80138

Bollinger Band Counter trend trade

Bollinger bands set to 2 deviations - 13 period - price close

This is used for active trading. Not a set and forget trading strategy.

It needs to be used in a trending market.

Works best to catch a short retracement – usually 2 to 3 candles to the moving average line, but sometimes if you stick with it the potential is much greater.   

15 minute chart is my preference set to 288 bars.

Take profit at 24 pips and stop loss at 12 pips to enter the trade. They can be adjusted to suit your style.

Lot size .02 and scale in if retracement is large enough or if it breaks out.

You are looking for the 1st full width of the candle to close outside of the Bollinger Band. When the candle closes outside of the band immediately take the trade opposite of the trend.

If it closes outside of the upper band take a short trade.

If it closes outside of the lower band take a long trade.

Manage the trade until it gets to your take profit or stop loss. It might happen in one candle or it may take more.

If the candle you entered on does not move and close in the direction of the retracement, consider getting out of the trade as it may be a fake out and will return to its trend. 

 

AttachmentSize
BB.png51.86 KB
Sat, 03/23/2019 - 11:00am