Klinger Bollinger Bands Forex Trading Strategy

To be profitable in the market means you’ll need a profitable forex trading strategy that can deliver consistent profits.

The main idea behind trading has always been to stay afloat no matter the prevalent market conditions.

The Klinger Bollinger Bands forex trading strategy is built to generate steady profits with the help of Bollinger Bands and some other technical indicators.

Chart Setup

MetaTrader4 Indicators: Bollinger Bands.ex4 (Parameters Modified; Period=28), JMA.ex4 (Inputs Variable Modified; Len=28), KVO.ex4 (Inputs Variable Modified; FastEMA=84, SlowEMA=120, SignalEMA=26)

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

Download the Klinger Bollinger Bands Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the medium sea green middle line of the Bollinger Bands MT4 indicator cuts through the red JMA custom indicator line in a bottom up manner as seen on Fig. 1.0, the overall market sentiment is said to be bullish i.e. a trigger to go bullish on the selected currency pair.
  2. If the silver histograms of the KVO custom indicator gets aligned above the 0.00 level as depicted on Fig. 1.0, price is said to be taken higher i.e. a signal to go long on the designated forex pair.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while a bullish signal is ongoing, the medium sea green middle line of the Bollinger Bands intersects the red JMA custom indicator line top downward, an exit or take profit is duly advised.
  2. If a silver histogram forms below the 0.00 level as shown on Fig. 1.0 while a buy signal is running, it is a trigger to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the medium sea green middle line of the Bollinger Bands MT4 indicator cuts through the red JMA custom indicator line in a top downward fashion as shown on Fig. 1.1, the general market sentiment is said to be bearish i.e. a trigger to sell the currency pair of focus.
  2. If the silver histograms of the KVO custom indicator gets place below the 0.00 level as illustrated on Fig. 1.1, price is said to be driven lower i.e. a signal to sell the forex pair of interest.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish alert is running, the medium sea green middle line of the Bollinger Bands intersects the red JMA custom indicator line bottom up, an exit or take profit is duly recommended.
  2. If a silver histogram forms above the 0.00 level as seen on Fig. 1.1 while a sell signal is ongoing, it is a trigger to exit or take profit forthwith.

Sell Trade Example

Fig. 1.1

Free Download

Download the Klinger Bollinger Bands Forex Trading Strategy

About The Trading Indicators

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 Jurik Moving Average (JMA) has an improved timing and smoothness, while tracking the chart’s quick up/down gapping action.

The Klinger Oscillator or KVO is a custom indicator developed by Stephen Klinger and is based on turnovers.

It shares a whole lot of similarities with the traditional MACD, but differs in the display of real-time imbalances between buying and selling pressures.

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