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.
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
The screenshot doesn't have SMA on it.
May I know what SMA do you use, for this system. Thank you very much in advance.
The time frame shown in pic is 1 minute.
which time frame do you use?..
Thank you for the great system, i am happy to make profit of 3pips per trade.
SMA - Simple Moving Average
What does SMA mean?
does this technique still follow the major trend?
Do you use a stop loss? If so what value do you usually set it as?
I use this system what I do is wait for rsi on long trades to break down back above 30 and down below 70 for short
Any you like: EUR/USD, GBPUSD, try GBP/JPY for a fast pip ride, but be careful.
i would like to know more scalping strategies in 1min for eur/usd please the aboce is for what currency?
The interesting part is that it not always possible to backtest it, or find enough examples on the historical charts, because when price breaks the upper Bollinger line and RSI is approaches 70, the RSI indicator will cross 70 for a short moment, giving you a signal.
When you open a trade and make a few pips (3-5 pips) just enough before the price start reversing, the RSI will be pulled back below 70 often without leaving any chart evidence of ever being above 70.
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