“Riding the Bands” with Forex Bollinger Band Double CCI Woody Trading System

High accuracy “Forex Bollinger Band Double CCI Woody Trading System” – Bollinger Bands are popular with technical analysts and traders in all markets, including forex.

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.

Bollinger himself stated a touch of the upper band or lower band does not constitute a BUY or SELL signal.

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

Look at the example below and notice the tightening of the bands right before the breakout.

To my earlier point, price penetration of the bands alone cannot be a reason to short or sell a stock.

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.

• Time Frame: M30 or higher
• Currency Pairs: Any

 

• Bollinger Band
• Double CCI Woodies

 

• Bollinger Band: the price began to trend outside of the upper band
• Double CCI Woodies: Green histogram

 

• Bollinger Band: the price began to trend outside of the lower band
• Double CCI Woodies: Red histogram