Complex trading system #9-a (H4 Bollinger Band Deviation)
Submitted by User on August 1, 2009 - 15:20.
In this strategy I will add some advanced techniques to the last strategy "Bollinger Bands deviation strategy Part I".
So first of all I will open the EUR/USD chart, then I will open the 4 hours time frame and I will add the Bollinger Band (20) and Zig Zag indicators. As we saw in the previous video, the entry point was the closing candle which corresponds to the bollinger bands deviation angle, this angle was defined by dropping a line from the lower ZigZag for short trades and from the upper Zig Zag for long trades.
Today I will make this strategy more accurate, I will not wait the H4 to finish the candle to enter into a long trade, what I will do is the following: I will spot a deviation in the bollinger band of the H4 chart and open the corresponding 1 hour chart, as soon as I see a bollinger band deviation I will enter a trade when the 1 hour candle is finished, by this way I entered a trade much sooner then the H4 chart which gave me more pips in advance.
Concerning the exit point. The exit point is defined by the H4 chart, we simply wait the H4 breakLine to be intersected with the H4 bollinger Band to exit the trade which gives us a maximum number of pips. So we used the H4 chart and the H1 chart in combination to harvest the maximum profit.
You can view the video of this strategy at: