Super easy and high accuracy Forex Multi Bollinger Bands Stop Trading System with Kinjun Sen and MTF MACD Indicator – So this strategy is called the Multi Bollinger Bands Stop Strategy which I have been tinkering around with for a while and wanted to share and get a discussion going.
The strategy uses four BBands Stop indicators and some pretty well known custom indicator. In this strategy it ( BBands Stop indicators ) will be used primarily as a trend identifier. We will only take trades in the direction of the trend so BUY in an uptrend and SELL in a downtrend.
And MACD is one of the most reliable indicators. Although we do not believe in using any indicators in our own trading and we always use the candlesticks charting and Bollinger Bands Stop to find the trade setups, still we believe that MACD is a strong indicator specially for novice traders who are used to get in and out of the market too early.
MACD is a lagging indicator and its delay makes you be patient, not to rush to enter the market or get out of it too early.
We will only take trades in the direction of the trend so BUY in an uptrend and SELL in a downtrend. Use this trading system for H1 TimeFrame.
- Bollinger Bands Stop indicators
- Kinjun Sen +
- MTF MACD in Color
- Stochastic_Cross_Alert_SigOverlayM_cw. indicator
- i-ParamonWorkTime. indicator
- RSI Signal
- Three or four Bollinger Bands Stop indicators have the same color GREEN. “For example,”
- 3 lines with green color line and one with a red color, the trend is upward and trade only buy.
- If there is this condition, when appears arrow to buy,
- buy at the opening of the next bar,
- H4 MTF MACD upward
- Price above Kinjun Sen + line.
- Three or four Bollinger Bands Stop indicators have the same color RED. “For example,”
- 3 lines with red color line and one with a green color, the trend is downwardward and trade only sell.
- If there is this condition, when appears arrow to sell,
- Sell at the opening of the next bar,
- H4 MTF MACD downward,
- Price below Kinjun Sen + line.
- Profit Target 300 pips depends by currency pair.
- Stop loss 25 pips below or above Bollinger bands stop (period 300).
Why Multiple BBands Stop and MACD Works…?
That is a million dollar question. Before we tell you why BBands Stop and MACD works, we prefer to explain about one of the most important reasons of forex traders’ (and also all other kinds of traders’) failure.
Maybe you have heard this a lot from us, but it has to be reminded in this article too.
Lack of patience is one of the most important reasons of forex traders’ failure.
Most traders are not patient enough to wait for a strong trade setup. After several minutes, hours or days that they wait for a trade setup (depend on the time frame or system they use), and they cannot locate any, they lose their patience and force themselves to take a position while there is no sharp and clear trade setup. So they lose.
On the other hand, when they succeed to take a good position, they get out too early with a small profit, because they are afraid of losing the profit they have already made. They do not have enough patience to hold a position until it hits the target. So they make their profit limited, because of lack of patience.
Multiple BBands Stop and MACD is a solution for these problems, because it is delayed and this delay forces you to wait more, both when you are waiting for a trade setup, and when you are holding a position. That’s why BBands Stop and MACD is recommended both by forex and stock traders.