Easy Three-Step Bollinger Band Technique That Makes Money
Prime skilled traders everywhere in the world use this method to trade. It works on any time-frame, however, it produces higher outcomes on the longer time frames resembling day by day, weekly and month-to-month. If used correctly it will possibly enable you to become profitable.
Step one within the system is figuring out one among three particular candlestick patterns. There are over 80 Japanese candlestick patterns nevertheless, we’re solely within the strongest patterns. The sturdy patterns we’re on the lookout for are darkish cloud cowl, bearish engulfing patterns, bullish engulfing patterns, and piercing traces. Every one of those patterns wants two candlesticks to type utterly. The second candlestick is very powerful and it should seem very sturdy.
The very first thing we’d like is a powerful candlestick pattern. The order shouldn’t be positioned until a powerful candlestick pattern has fashioned.
The second step is the candlestick pattern will need to have a powerful Bollinger band escape of the higher or decrease bands. The primary and second candle should escape the higher or decrease band strongly. If the principles aren’t met the trade arrangement ought to be ignored.
So the second factor we’d like is a sturdy higher or decrease Bollinger band breakout.
Rule one and two present an indication which signifies that the worth desires to alter. Both to break down or advance. It solely tells us that both the Buyers (bulls) or the sellers (bears) are getting drained, giving up, or switching sides.
The foundations additionally require that the sturdy candlestick pattern ought to type had been neither the bulls or the bears would not have full management over the worth. This implies one of many events has change into exhausted within the battle to manage the worth motion.
So the third factor we’d like is a market exhibiting signs of exhaustion the place neither bulls or bears have full management over the worth action.
In case you would not have all three of those circumstances it’s too dangerous to put an order.
Utilizing this Bollinger band system you’ll be able to count on to trade 5 instances in a single month. You’ll be able to set your take profit order as much as ten instances your stop-loss order. Your stop-loss order is the finest set on the earlier candle’s excessive or low price.
I like to recommend that you simply apply in a demo account first. No technique is 100% proper regularly. We’re traders, not fortune tellers. Nevertheless, with correct threat Management, and a strong exit plan it’s doable to change into persistently worthwhile trading currencies.