FREE DOWNLOAD Stoch Bollinger Bands Pro FX Forex Trading System & Strategy – Please feel free to have a look. I am about to make a bold claim here, this system does and will work if used properly.
It is important that everyone has a good working knowledge of Risk Management. The system is only a part of making money and keeping it.
Stoch Bollinger Bands Pro FX Forex Trading System & Strategy
As you can see above I have highlighted a single trade at random, you should be able to see all indicators giving a clear sell signal at the time the grey arrow appears. We can tell this is a signal for a short position in several ways.
- RULE 1: The 50MA (blue) is heading in the direction of the indication.
- RULE 2: The indicators in the indicator window are all showing an overbought position, they are ALL squeezed to above the 80 line on the vertical scale, in fact they are squeezed so tightly they all appear to be one line.
- RULE 3: Never enter a trade until the current candle has closed. So in this instance the grey arrow indicates a short position opening up, this means we will wait for that candle to close and we will only enter when the price drops below the low of the candle to trigger the signal.
The beauty of a system that is this visual is that you can instantly decide if the chart you are looking at has any potential for profit via these indications.
It is very important to remember that any system will pick up every trade that may yield profit, it was my aim to find maybe 1-2 trades per week per chart via this principal and to be sure that if everything lines up correctly then I have a mighty fine chance of taking a few pips out.
- The exit signal can be determined when an opposing arrow appears but this does not mean that you should ever reverse a trade unless it fulfils the requirements of rule 1,2&3.
Please research money management skills if needed, close parts of each trade at certain points and constantly adjust the stops to ensure that I attain a 0% risk position as soon as possible without suffocating the trade and then I bring the stop loss in to profit gradually, closing portions of the trade as I go. Other money management techniques work just as well too, this is just my preferred option.
If anyone has any questions or would like some live demo time just let me know.
It is more important to know when not to trade, i judge this in 3 ways. Firstly if the 50MA is flat or opposing the indication then personally i leave it. If the bollinger bands in the indicator window look really messy then generally speaking the market will be in consolidation and not worth the risk.
Finally you will need to take the major levels of support and resistance on longer timeframes in to account. I.E never a good idea to trade around big numbers, proven levels of daily support and resistance and of course news.