Scalping system #14-a (Bollinger Bands + RSI in a range)
Submitted by User on February 12, 2011 - 13:57.
Here is a simple scalping strategy on the one minute chart. Bollinger Bands using 21 & 2, SMA.
The second indicator is RSI at the default settings.
When the price penetrates the upper band and the RSI is above 70 consider entering short and exit at the center line or 3-5 pips.
When the price penetrates the lower band and the RSI is below 30 consider entering long.
This strategy is effective in a ranging market. If there is a trend, wait for the price to penetrate the center line indicating the trend is over before entering long or short.
For confirmation, you can add Stochastics at the default settings.