Forex trading strategy #10 (H4 Bollinger Band Strategy)
Submitted by User on December 24, 2007 - 04:09.
Current strategy was submitted by Joe Chalhoub.
Thanks Joe, and happy trading to everyone!
H4 Bollinger Band Strategy
Tools : Bollinger Bands(20)
TimeFrame : H4
Currency : ALL
This strategy is extremely simple and I use it to detect opportunities and it is very good.
If you open an H4 EUR/JPY chart and you insert the Bollinger Bands(20) indicator, if you observe the chart you will see that the bands are simply a Resistance and Support. The Upper band is a Resistance and the Lower Band is a Support. If you pay attention to the chart you will see that most of time the price hit the upper band then it retraces back to Lower Band, so how I trade is very easy, I wait till the price touches let’s say the upper band and closes under it (not above it) and wait till the candle is formed, when it finishes and the next candle opens under the previous Upper band then I enter a Short trade with target = 100 pips or until it touches the Lower Band.
Same thing when it touches the Lower band and the candle closes above it, and the next candle opens above the previous Lower Band then I go Long with Target = Upper band or 100 pips. You can develop this strategy as I did, and you can profit a lot, I made more than 800 pips this month.
You can check my website for any further help http://rpchost.com . If you think in this technique and observe the chart I am sure you will develop this strategy quickly and make 99% winning trades.
Good Luck.
Joe Chalhoub
H4 Bollinger Band Strategy (Part II)
Tools : Bollinger Band(20)
TimeFrame : H4
Currency : ANY
This strategy is a continuation of the previous strategy I submitted before (Forex trading strategy #22 ).
This strategy is very simple, and you can find more details at Rpchost.com forex forum.
First open a currency (per example EUR/USD) and H4 timeframe, issue suitable breaklines from the bollinger band (visual examples are at rpchost.com forex forum), now wait till a candle breaks the breakLine. This break is not a trade signal we must have an extra confirmation, here come the role of the bollinger band.
look at the bollinger band upper and lower, if they are both opened which means upper band is UP and lower band is DOWN, then it is a confimation of a trade.
Good Luck.
Joe Chalhoub
Profile : http://www.rpchost.com/profile.aspx
free forex signal : http://www.rpchost.com/freeforexsignal.aspx
Economic Calendar : http://www.rpchost.com/economic-calendar.aspx
forex forum : http://rpchost.gooboards.com/
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
I also found that i need to be extra careful when using the H4 Bollinger Band trading on the middle band either it pass going down or up. At times, it might trend side ways even for the day but it has passed the middle band and the assumption it expects to go down. I have made slight loss when trading at the bottom there however luckily it was 30 pips lost because it is possible the EUR/JPY may move upwards. So now i need to wait until the trend starts to move downwards with the Bollinger Band and the middle band pointing a reverse trend and take an entry after it has passed the support of the last lows. So far you will make little as compared to 100 pips, i would say around 50-70 pips within 1-2 days which is quite good. The stop loss would be 100. My other objective is open 2 position, 1 would be for quick gain and the other for long term.
I have checked your website at rpchost.com. its seems very good the results you have put in but i am looking through some of the past performance you did in 2010 and it seems you are getting out of trades around 35 pips lost at $10 per pip. With the Bollinger Band, is this something new that you have introduced?
I am also using the 4 hour and 1 day Bollinger bands to great effect. I would trade around 2-6 times in a month and take home between 250 to 600 pips in a month on a single currency pair (EUR/JPY). On the money management side, i would put in about a 100 pip stop loss and wait for the candle to pass the moving average of the bollinger band and pointing in the direction of the new trend. I would take a trade there and wait for about the time for me to come out when it the candle crosses the moving average.
You are right to say that the Bollinger Band is a great tool for support and resistance. I also add the SAR Parabolic as one indicated to add to the strong values of Bollinger Bands. At times the SAR Parabolic serve an excellent tool when it is trending. When the pair moving sideways, it would give some false but using the Bollinger Band where it starts to squeeze, then its a sign of not going in at all. You still can go in if you are brave enough to sell when it reaches the top portion of the Bollinger Band and Buy on the opposite. The difference can be as much as a 30 to 50 pip win
I find that a contracting Bollinger band is a sign that the market is about to trend. Usually the bands will meet up into a narrow neck which will be followed by a sharp price movement. Using other indicators to back this up is always a good idea before you enter a trade. Many will only use Bollinger Bands as their only tool but this can lead to missing the bigger picture. http://stockanalyzerpro.com/bollinger-bands/
Hi Joe:
That's really good strategy but i do not know where the exit and SL to be applied for this system. I will be appreciated if you would... :)
Regards,
John
Just tried this signal and I got 71 pips in 5 hours -EURJPY- Can this method use for others pai.
dinmuar
I don't really have any questions at the moment, I just want to say that I am very impressed with this site if it interests anybody. If it doesn't, I don't care anyway.
Hi All,
The first strategy written by Joe, what is the Standard Deviation setting... Joe wrote Bollinger Band(20)... abit confused
Regards
Jesse
This one is awesome website for Forex trader, I have come accrossssssss .......
Thanks a ton Edward ...
Rupesh
I've seen a few traders who trade spot gold here, but I think yes you can apply it there.
Thomas
Is this strategy applicable to Spot gold trading also???
I can give at least 20 example from just the past 2 days from various currency pairs where this system fails. You should try to improve the signals, in your current description they are not even near to be good enough
Hi
One thing is clear. This strategy is for the big shots. How can one who has small amount as trading capital trade with 4H. Is there a way to use thi method on smaller time frame.
Kindest Regards
Michael
michaelobiorah(at)yahoo.com
Hi Joe,
I do think this is very strong strategy to use, and I can definitely see a pattern in different currencies.
However, there are a few instances where even though the signal is strong for eg. a BUY, I still see
the next candle plummeting even lower.
My Question: What additional conformation signals do you us...RSI / Stockastic..?
Thank you in advance.
Izak
Hi Ismail,
It was suggested around 100 pips.
Thomas
hi guys, first of all thanks for every one for this great effort.
where should stop loss be for 4h bollinger band strategy.
thanks for help and support
Ismail
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