Bollinger Band Rollercoaster Forex Trading Strategy

The ability to measure volatility in the market is key to profitability and traders are keen on knowing how this panes out at every given instance in the market.

The Bollinger Band Rollercoaster forex trading strategy is designed to help traders take advantage of market volatility. It provides traders with accurate buy and sell signals.

Chart Setup

MetaTrader4 Indicators: Bollinger Bands.ex4 (default setting), FIBTunnel.ex4 (default setting), Elliot_Wave_Oscillator.ex4 (Input Variable modified; SlowMA=45)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy if the following indicator or chart pattern gets displayed:

  1. If the Bollinger Bands widens with price trading somewhat along the upper outer band of the Bollinger Band, while staying above the mostly red lines of FIBTunnel.ex4 custom indicator (refer to Fig. 1.0), price is said to be bullish i.e. a signal to buy the designated currency pair.
  2. If the mostly lime and green histograms of the Elliot_Wave_Oscillator.ex4 custom indicator stays above the 0.00 level as depicted on Fig. 1.0, price is said to be pressured to the upside i.e. a trigger to go long on the currency of interest.

Stop Loss for Buy Entry: Place stop loss 3 pips below immediate support or below the red rising FIBTunnel lines.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following holds sway:

  1. If the Bollinger Bands contracts along with price closing below the mostly red lines of the FIBTunnel.ex4 custom indicator, price is said to be taking a bearish reversal, hence an exit or take profit is recommended.
  2. If a red or maroon histogram pops up below the 0.00 level, it is advisable to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the Bollinger Bands widens with price trading somewhat along the lower outer band of the Bollinger Band, while staying below the mostly red lines of FIBTunnel.ex4 custom indicator (refer to Fig. 1.1), price is said to be bearish i.e. a signal to sell the currency of focus.
  2. If the mostly red and maroon histograms of the Elliot_Wave_Oscillator.ex4 custom indicator stays below the 0.00 level as shown on Fig. 1.1, price is said to be pushed to the downside i.e. a trigger to go short on the currency of interest.

Stop Loss for Sell Entry: Place stop loss 3 pips above immediate resistance or above the red declining FIBTunnel lines.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds true:

  1. If the Bollinger Bands contracts along with price closing above the mostly red lines of the FIBTunnel.ex4 custom indicator, price is said to be making a bullish reversal, hence an exit or take profit is recommended.
  2. If a lime or green histogram pops up above the 0.00 level, it is advisable to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Elliot_Wave_Oscillator.ex4 custom indicator is an oscillator that depicts the difference of, a 35 and a 5 period simple moving average (SMA) of prices illustrated as a histogram aligned above and below a zero level.

The Bollinger Bands consist of three bands with the outer bands being plotted as standard deviations away from the middle simple moving average band.

The indicator offers good clues on the state of volatility in the market.

The FIBTunnel.ex4 custom indicator is made up of series of lines that are closely woven together to form a support or resistance level for price depending if price is aligned above or below the indicator.

Download The Bollinger Band Bounce Trading Strategy For FREE!

Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately.



  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
  • Learn And Trade This Strategy In only 10 Minutes