Forex trading strategy #22 (H4 Bollinger Band Strategy)

Hi Joe

Nice site!

I traded a similar style for a while called the bollinger peak a boo where you wait for one bar to close ouside the band then the next one inside and then trade it to the 20EMA. But after 15 trades I was up only 50 pips. I will have to check out your version.

I thought this was meant to be a "bollinger breakout" method?

. I have a great and simple way to use bollinger bands on the H4 to get massive breakouts - Sometimes up to 1000 pips (if you let it run over a week or two)

You simply wait until the bands narrow (the smaller the better) and then when there is a massive break of the band and they suddenly look very "steep" I enter in the direction of the break (after the bar closes).

It's very consistant but one thing you have to watch is the volatility at such times. You need quite a wide stop depending on the market I usually use a 100 pt stop because it often pulls back a bit before dropping again.

The other thing that can cause headaches is where to take your profit. You can get massive movements by waiting until the price closes back over the 20EMA but you can also get whipsawed this way and go from 150 PIPS profit to nothing.

All the same the risk reward ratio on these trades is excellent. You should aim for a minimum of 200 PIPS. But of course this is a personal thing and you should test all this yourself to find what you're comfortable with.

I tried to include a screenshot as an example of one of these trades but it won't let me pste it on here.

Let me know what you think
Simon
Australia

Hi

What other signals do you use to confirm the trade?

Also on my charts I have the option of exponential or simple bollinger bands - Which one would be better?

I have looked at your website but can't find any info about this technique!

Thank you
James

THANKS JOE,PLEASE WHAT DEVIATION AND SHIFT ARE WE TO USE IN THIS UR STRATEGY

I submitted new technique which is an extension of this one, and sure I use the Bollinger Band which is a great indicator, I tried all combinations of indicators but none of them helped me as Bollinger Band did. My new posted technique is [H4 Bollinger Band Breakouts] it explains where and when to enter a trade try it and be familiar with it and in the future I will post a new technique on where to exit a trade and extract from the market the maximum pips we can.

Rpchost.com

Thanks Joe.
I just stumbled into your strategy post and cant agree less with you on this strategy,cos I've used it severally and it has worked like magic for me.
In my opinion,the bollinger band is the most potent of all indicators,excluding candle formations.
I have a similar strategy to this which has a lot to do with inside day bollinger band formation.
great job.

Joe,
I hope to share the inside day bollinger formation I mentioned earlier soon.
Isioma

seems like this does not work well once the market starts to trend.

D

Do you use this strategy only for EUR/JPY or you use it with other pairs. If it is used with only EUR/JPY, can you explain to me if there is any reason for this. This look quite promising and i am really willing to give it a go. will definitely get back to you on this.

Thanks for sharing.