31# Bollinger Band Squeeze Reversal System
Bollinger Band Squeeze flat
Submit by Marcus 10/05/2014
Bollinger Band Squeeze reversal system it'is based on the three bollinger bands.
Time Frame 30 min or higher.
Markets: forex, futures, Indicies, Stocks.
Metatrader 4 indicators:
3 bands indicator: setting
Bollinger Bands (120, 1) ;
Bollinger Bands (120, 2) ;
Bollinger Bands (120, 3) ;
Bollinger Band Squeeze;
Exponential Moving Average (4) (setting H1);
Exponential Moving Average (8) (setting H1).
Rules for Bollinger Bands Squeeze Reversal System
Check the price position.
If the price is on the one of the three Bollinger Bands on the lower or upper band check if the price rebound. If rebound entry position when EMA (4) crosses EMA (8).
The best entry is if the price bounces twice on the bands.
Do not enter if the price bounces off the first band (upper or lower).
Buy
Bollinger Band Squeeze flat
Price rebound on the one of the three lower bands
Entry position when 4 EMA crosses upward 8 EMA.
Sell
Bollinger Bands Squeeze flat
Price rebound on the one of the three upper bands
Entry position when 4 EMA crosses downward 8 EMA.
Exit position
Make profit at one of the middle bands or ratio 1.2 stopo loss.
Initial stop loss 15 pips below or above entry position.
This method can also be used for trading with Binary Options.
Bollinger Band
FXtrader (Thursday, 24 July 2014 17:03)
Hello Marcus
I would really appreciate it if you would please confirm what the different coloured dots on the 0.0 line actualy represent, and how they inter-relate to the histogram bars?
Many thanks