ForexWOT BBMA – The Best Bollinger Bands Moving Average Trading System

The Best and High Accuracy Bollinger Bands Moving Average Trading System. The greatest myth about Bollinger Bands is that you are supposed to SELL at the upper band and BUY at the lower band; it can work that way, but IT DOESN’T HAVE TO.

Applying Bollinger Bands to WPR demonstrates an important lesson when using technical indicators.

You should not make an investment decision based only on the signals given by a single indicator or data point.

Fortunately, Bollinger Bands can be used in combination with different indicators, like WPR, RSI, as well as support and resistance, moving averages, MACD, stochastics, and any other research tools that may support your analysis.

 

Tightening of the Bollinger Bands Right Before the Breakout

Bollinger bands are a powerful technical indicator created by John Bollinger.

Some traders will swear that solely trading a Bollinger Bands strategy is the key to their success.

Many of you have heard of popular technical analysis patterns such as double tops, double bottoms, ascending triangles, symmetrical triangles, head and shoulders top or bottom, etc. The Bollinger Bands indicator can add that extra bit of firepower to your analysis by assessing the potential strength of these formations.

The single biggest mistake that many Bollinger Band novices make is that they SELL the market when the price touches the upper band or BUY when it reaches the lower band.

John Bollinger himself stated that a touch of the upper band or lower band does not constitute a Bollinger Band signals of BUY or SELL.

Not only have I seen, but I have also traded the riding the bands strategy as a continuation setup.

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Take a look at the example below and notice the tightening of the Bollinger Bands right before the breakout.

Notice how the volume exploded on the breakout and the price began to trend outside of the bands. These can be hugely profitable setups if you give them room to fly.

 

ForexWOT BBMA Trading System

Bollinger Bands are one tool that can help you decide when to make your move by illustrating the relative strength—or momentum—of a stock, forex, or other security.

 

  • Best Time Frames:
    • M15, M30, and H1 for intraday trading
    • H4 and D1 for short-term swing trading
  • Most Recommended Currency Pairs: GBPUSD, EURUSD, and USDJPY

 

MetaTrader Trading Indicators
  • Bollinger Bands
  • Moving Average
  • MA Crossover Signal Candles
  • WPR
  • Signal Trend
  • MT4 SEFC X
  • MT4 Cycle Major

 

BUY Rules

  • Notice the TIGHTENING of the Bollinger Bands right before the breakout
  • Make sure the candlestick closes above the upper Bollinger Band line
  • The 5  EMA (Yellow color) above the 10 EMA (White color)
  • MA Crossover Signal Candles green color
  • WPR line upward above 0 level line
  • Signal Trend green color bars
  • Fisher indicator green color bars
  • MT4 Cycle Major indicator green color bars
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SELL Rules

  • Notice the TIGHTENING of the Bollinger Bands right before the breakout
  • Make sure the candlestick closes below the lower Bollinger Band line
  • The 5  EMA (Yellow color) below the 10 EMA (White color)
  • MA Crossover Signal Candles magenta color
  • WPR line downward below 0 level line
  • Signal Trend red color bars
  • Fisher indicator magenta color bars
  • MT4 Cycle Major indicator magenta color bars

 

Trading NOTES
  • Notice the TIGHTENING of the Bollinger Bands right before the breakout
  • Most importantly, you should consider complementing technical analysis with sound fundamental analysis. As it can be said, the fundamentals can tell you what to BUY or SELL; the technicals can help to decide WHEN.


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