Online Forex Trading – How to Win Forex Trading Stochastic Bollinger Bands with Keltner Channel Indicator

Solid Forex Trading Tips –  How to Win Forex Trading Stochastic Bollinger Bands. Or this is Keltner Channel and Bollinger Bands Reversal forex trading system. Most technicians will use Bollinger Bands® in conjunction with other indicators, but we wanted to take a look at a simple strategy that uses the bollinger bands and oscillator stochastic to make trading decisions.

 
Bollinger bands are a very powerful technical indicator.  Some traders will swear that solely trading bollinger bands is the key to their winning systems.
 
Bollinger bands are drawn within and surrounding the price structure of a stock. It provides relative boundaries of highs and lows. The crux of the bollinger band indicator is based on a moving average that defines the intermediate term trend of the stock based on the trading timeframe you are viewing it on. This trend indicator is known as the middle band.
 
Most stock charting applications default the middle band to a 20 period moving average. The upper and lower bands are then a measure of volatility to the upside and downside. They are calculated as two standard deviations from the middle band.

Recommended Article:  10 Best Highly Effective Trend Indicators and Forex Trading Systems

 

Stochastic Bollinger Bands Trading Rules

 

Forex indicators:

  • Keltenr Channel indicator
  • ADX 9
  • Stochastic indicator (28,5,3,) with Moving Average 10 period, and Bollinger Bands (10, deviation1).

 

BUY Rules
  • Price should be above midle the Keltner bands,
  • Stochastics should be outside the bollinger bands and crossing back up the middle bands of Bollinger Bands but the slow stochastics crosses above 20 level,
  • ADX upward and above 25 level,
    When these three conditions are met to open a position.

 

SELL Rules
  • Price should be below midle the Keltner bands
  • Stochastics should be outside the bollinger bands and crossing back down the middle bands of Bollinger Bands but the slow stochastics crosses below 80,
  • ADX upward and above 25 level,
    When these three conditions are met to open a position.

 

EXIT Position

At the middle band of the Keltner channel or with fast profit target (80-120 pips depends by currency pairs). Place initial stop loss 100 pips above or below entry bar.



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