43# Bollinger Bands Scientific Trading

Submit by Maximo Trader

Bollinger Bands Scientific Trading is a specific interpretation of the indexer Scientific Scalper with Bollollinger Bands and it was discovered that this indicator works trend reversal with Bollinger Bands.

The main features of this indicator are the following:

Analyze the trend and define the direction of the trend (the direction of the trend is indicated by the underlying color (red down, blue up).

Then, when the trend has been defined, the indicator generates signals in the direction of the trend when the market is overbought or oversold so as to have highly reliable signals.

In the system these areas of overbought and oversold concide with the upper and lower band of the bollinger Bands.

In this trading system the bollinger bands are used as profit and stop loss levels.

Time Frame 5 min or higher.

Currency pairs majors and minor with low spreads for day trading.

Trading Rules Bollinger Bands Scientific Trading

Long entry

Buy

When the market is in a situation of oversold, the indicator generates a blue buy signal that must be taken into consideration only if the background is blue, ignoring the sell signals.

Stop loss below the lower band or n.pips depends by currency and time frame.

Profit target at the middle band or opposite band, other: ratio stop loss/profit target 1:1. or exit at opposite signal.

Sell

When the market is in a situation of overbought, the indicator generates a red sell signal that must be taken into consideration only if the background is red, ignoring the buy signals.

Stop loss above the upper band or n.pips depends by currency and time frame.

Profit target at the middle band or opposite band, other ratio stop loss/profit target 1:1. or exit at opposite signal.

Note. The system can generate more false consecutive signals in the presence of a constant upward trend or downward trend.

In the pictures Bollinger Bands Scientific Trading

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