Objective:Capture
trend reversal movements leveraging Bollinger Bands with different
deviations.
Indicators:
–
Bollinger Bands (25, 3.0) for market condition identification.
–
Bollinger Bands (20, 1.0) for entry timing.
–
MACD (7, 21, 7) for confirmation.
Setup
Strategy:
–
Time frame: 5 minutes or higher.
–
Instruments: Gold, Nasdaq 100, volatile currency pairs.
Trading
Rules:
Buy
Enter
long positions when price touches or breaches lower Bollinger Band
(3.0 deviation) and retraces towards central moving average.
Confirm
when the price closure enter the Bollinger Bands with deviation 1.0
Validate
with MACD histogram near zero or showing positive values.
Sell
Establish
short positions when price touches or penetrates upper Bollinger Band
(3.0 deviation) and retraces towards central moving average.
Confirm
when the price closure enter the Bollinger Bands with deviation 1.0
Validate
with MACD histogram nearing zero or displaying negative values.
Re-enter
if the first entry fails even if the price does not touch the outer
band
Exit
Position
Implement
stop-loss orders at preceding swing highs for buy positions and swing
lows for sell positions.
Set
profit targets with risk-reward ratio ranging from 1:1 to 1:1.5.
Money
Management
Allocate
fixed risk of 1% per trade.
Additional
Considerations
Exercise
surveillance during high market volatility.
Avoid
trading during high-impact economic releases or events.
Regularly
evaluate strategy efficacy and adapt as necessary.
