Dec 18

Forex Trading with Bolly Band Bounce Strategy

When you are in a bad situation where you cannot decide whether you want to trade or not due to the price range is decide, you still have one forex strategy you could use to turn the table around. This strategy is called Bolly band bounce forex strategy which can help you to trade at all in a range bound market. You can do this strategy on the market by observing the price when the volatility indicator creates a limitation for short-term movement of the price. Basically, this approach is only effective when the market has range on the price.

Bolly Band Bounce Forex Trading Strategy

Bolly Band Bounce Forex Trading Strategy

What should you do before you use Bolly band bounce forex strategy?

The most effective situation or condition for you to trade using this forex strategy is to trade the bounces at the outer bands. In this outer band, the price will come to you with an encounter resistance and back to normal to the other bands. But before you use this strategy, it is better for you to make sure that the price is really in a range. You can make sure the price using lots of methods but with this volatility indicator or Bollinger bands, you can use the simplest method. When there is a change in the market, the indicator will show you a signal at the bottom of it.

How to trade with Bolly band bounce strategy?

To use this forex strategy, you need to a sign that the price will come and stay in range. The signals can be bearish engulfing candlestick pattern followed by positive engulfing pattern or a confirmation from the near evening star. Basically, this strategy is a strategy for you who do not want to loss with limited profit. So you only enter the market when the situation is save and take profit immediately before the price bounce back.

Conclusion is that you need to have a better judgment on the market when to move or when to stop. And you better use this strategy not on a crowded market and always pay attention on a confluence of the outer band.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>