Awesome
with Bollinger Bands is a trend reversal forex strategy.
Strategy
Setup
Trading
occurs between 3:00 am to 11:00 am ESDT (Eastern Standard Time)
within a 5-minute time frame focusing on major currency pairs.
Currency
pairs:AUDUSD, NZDUSD, GBPUSD, EURUSD, USDCHF.
Indicators
utilized are:
Bollinger
Bands (20; 2),
Awesome
Oscillator,
MACD
(12, 26, 9).
Trading
Rules
Trades
are executed when the Mid Bollinger Band (BB), Awesome Oscillator
(AO), and MACD align.
Long
Entry
A
bullish candle closing above the Mid BB signals entry at the opening
of the next candle if other indicators confirm.
Confirmation
includes: AO turning green above zero, MACD green line above red
line, and MACD histogram above zero.
Short
Entry
A
bearish candle closing below Mid BB signals entry at the opening of
the next candle.
Confirmation
includes: AO turning red below zero, MACD red line below green line,
and MACD histogram below zero.
Exit
position
Most
important rules include taking only 10 pips per trade, setting stop
losses three pips under Mid BB for Long trades and three pips above
for Short trades, aiming for a daily target of 40 pips, and trading
exclusively on the 5-minute timeframe.
Exiting
trades aims for a profit target of 6-10 pips while adhering to risk
management guidelines of not risking more than 2-3% of the account
size.
