Bollinger Bands Strategy – Although the core ideas of forex trading are really simple, developing self-discipline is essential in order to consistently generate substantial returns in this market. It will be demonstrated using the Bollinger Bands indicator as well as Support and Resistance levels in order to showcase a straightforward trading method that even a novice trader will be able to learn and implement to his or her own account.

Watch the video below (which contains real-time transactions that netted more than $200 in less than 30 minutes) or read the text that follows to gain a better grasp of this strategy.

It is in this part that I will introduce you to the concept of Support/Resistance Levels, which I shall discuss in greater depth later in this book. If you have already received a thorough explanation of the subject matter in the preceding section, there is no need to delve into more depth in the next section.

Support levels and resistance levels are terms used in technical analysis to describe the points at which prices have stopped dropping and, in turn, have stopped rising. As demonstrated by the number of bids received, these are the price levels at which the number of buyers outnumbers the number of sellers of a certain item, according to the US dollar.

Trading Strategy Using Bollinger Bands That Worked

How to Trade Bollinger Bands Successfully

However, when the price of an asset hits resistance levels, it has come to a complete halt in terms of its upward trend, as opposed to when the price of the asset approaches support levels. When it comes to pricing, “price levels” are the prices at which sellers of an item have a considerable advantage over buyers in the market while that item is still available on the market at the time the price level is set (or when the price level is determined). For further information, please view the Bitcoin chart, which can be seen below the fold in this article. The support and resistance levels are represented by the red and green lines, respectively, whilst the support and resistance levels are represented by the blue and yellow lines, respectively. This has resulted in the price of bitcoin fluctuating in both directions throughout the day, as seen by the yellow line in the chart above.

Draw a green line at the top of the price levels during the time period you are interested in and a red line at the bottom of the price levels during the timeframe you are interested in in order to make things as simple as feasible.

Remember that the more the number of times a price has rallied back up from a certain price/point, the stronger the support level in that region is likely to become in the near future. Furthermore, when the price has repeatedly rebounded from a resistance level, it is possible to infer that the level is more powerful; the contrary may also be true in this circumstance.

On the relevance of the second and third rules of thumb, it is impossible to overestimate their importance. Generally speaking, on longer-term charts, the levels of support and resistance represented on the charts are more meaningful than the levels of support and resistance depicted on shorter-term charts, which is widely regarded.

After we have obtained a greater knowledge of the levels of support and opposition, we may proceed to the most crucial form of decision-making accessible to us: consensus.

When it comes to trading, traders must be patient in order to reap the rewards of their investments, and they should only enter into transactions when the market conditions are favorable.

Begin by following the steps outlined above, but this time instead of bar charts, use candlestick charts, as seen in the example on the left.

A secondary strategy is to employ Bollinger Bands with the Period and Standard deviation values increased to 20 and 2, respectively, as seen in the chart. After that, pick ‘Include the Indicator’ from the drop-down menu that appears. This will complete the process. Fourth, make a list of everything you intend to do over the following several days.

Bollinger Bands Trading Strategy That Works

In the financial markets, bands (also known as Bollinger Bands) are a sort of chart indicator that may be used to do technical analysis on a price chart. Generally speaking, they are linked with the stock market, although they may be applied to any type of financial market research study, including those involving financial instruments. To put it another way, it shows how much the market has been overbought or oversold at any particular moment in time on the graph. In the case of Bollinger bands, three lines of text are used to create them, which is the standard length for this form of banding. An overbought condition is represented by the green circle in the accompanying illustration, which represents how much the stock’s price has increased. It is not difficult to understand why this firm is rated at the very top of our rating. As can be seen in the bottom line, which is denoted by a red circle, the oversold level, which is represented by this line, shows that the market is in an oversold state.

The candlestick will pass through the green support line while also crossing over the top line of the Bollinger band at some time throughout the course of this approach, signaling that the technique has commenced (green circle). When this occurs, a trade is entered into the system with the label “Low” to indicate that it took place in this manner, as described above.

Depending on whether the region covered by the red support line and the red circle delineated by the Bollinger band are the same, it may be possible to test alternative trading strategies on the stock market. Consequently, every time the “High” position is filled, a transaction for that post is logged in the system.

The chart should be displayed in a one-minute time frame, and the trade timing should be displayed in another one-minute time window, as shown in the diagram. The EURUSD and the GBPUSD, on the other hand, will be the most ideal assets to utilize in this circumstance since they are the most liquid assets.

Make a preliminary double-check that all of the entrance points are perfectly aligned with one another before moving on.

To put it bluntly, when it comes down to it, that is all there is to it when it comes to it. Maintaining your determination and patience throughout the process will allow you to reach your goals with little difficulty.

The following are a few of the most common blunders traders make when utilizing the Bollinger band approach: 1.

Overtrading

In the great majority of situations, applying extreme pressure to make a transaction when the opportunity is plainly not there results in a loss of money for the trader. Successful people must follow the rules and maintain their patience while waiting for a chance to offer itself in their direction.

If you are trading this instrument, it is recommended that you do it in extremely volatile markets such as these. Due to the fact that when the market is calm, you will have to wait a longer period of time until a good chance arises. Following the reading of these articles on the Forex Market Hours in India and the Philippines, you will be able to distinguish between times when the market is at its most volatile and times when it is not.
According to the Commodity Futures Trading Commission, trading more than ten percent of your total account balance in a single trading transaction is against industry standards. Because transactions may be completed for as low as $10 per transaction, EasyTrade is a highly cost-effective trading platform to use. Using EasyTrade is simple.

Bagikan:

Mr Ell

Learn More Gain More, Tak ada yang tidak mungkin selama kita mau belajar.

Tinggalkan Balasan

Alamat email Anda tidak akan dipublikasikan.

error: Jangan Klik Kanan Bro!