The method of Forex trading - Bollinger bands.

This trading strategy is based entirely on technical analysis, but rather on the mere trend indicator - "Bollinger Bands". This technical indicator was developed by John Bollinger, and allows traders to compare the volatility of the Forex market and relative price value for a certain period of time. Consists of three bands, completely covering the foreign exchange market dynamics.

The principles of the strategy based on the lines of Bollinger.

- The time interval at the terminal - D1, daily.
- By price chart attached 2-a indicator Ballinger Bands.
- The first light with the following settings Ballinger Bands (20,1) blue.
- The second indicator Ballinger Bands (20,2), white.
The strategy provides two types of trading signals to open a position in white and blue.

Rules of strategy.

The most important rule: "white" trading signal will always be more important than the "blue".
White trading signal appears after the price chart (candlestick in our example) swinging white Bollinger and closes inside the channel. In Fig. 1 circles labeled buy signals. In these places the candle touched the white LED and closed within the channel. Purchases can be made ​​on the next candle. Take-profit, usually set to white signals on the middle line of the indicator Bollinger. But if the trend is strong enough, you can use a trailing or set the level of profit is closer to the other bars.

Blue trading signals are weaker and are formed when the price is within the blue channel Bollinger and then transcends it, but it does not affect the white line. Warrant opens toward the white bars. Marked by circles in Figure 2 buy signals. Blue signals on take-profit is not installed as a warrant to open it must be closed at the time the white signal. Blue signals often give false entry point, so we need to be more careful when working on them. Even in our picture shows that the blue signal was given multiple times, or a false signal or a position with a short half life.

Orders to limit losses (stop-loss) can be placed on the trader's choice, and with the utilization of money management. Approximate foot using indicator Bollinger can be calculated as follows: calculate the current width of the channel and stop exhibiting at the same distance.

This trading strategy is more robust to the "white" signals, and the use of "blue" - should use auxiliary strategies. Bollinger Bands are more effective on large time intervals (from day and above). Most preferably, use the "Bollinger Bands" as a core strategy, but supplement it with technical analysis on a smaller time frame, such as the H1. It might look like this: get white signal on this strategy, and the time schedule are looking better time entry, after the discovery of conducting the transaction is also on the hourly chart.