23# Triple Confirmation Reversal Strategy with MT4 Mobile
Submit by Janus Trader
Triple Confirmation Reversal Strategy It is a mobile MT4 trading strategy based on overbought and oversold that works on the extreme sides of the market. The strategy aims to identify potential reversal points in the market by using a combination of Bollinger Bands, RSI, and Stochastic indicators. It signals a potential sell when the price is overbought and a potential buy when the price is oversold. The conditions for entry are based on the alignment of these three indicators.
Setup Strategy
Time Frame 5 min or higher.
Currency pairs AUDUSD, NZDUSD, EURCHF, AUDNZD, EURCAD, GBPJPY, GOLD, EURUSD, GBPUSD (major, minor and GOLD).
Indicators:
Bollinger Bands (20, 2.0),
RSI (14 periods),
Stochastic (5,3,3).
1. Bollinger Bands: The price candle must touch or close above the upper Bollinger Band.
2. RSI (14 periods): The RSI value should be above 70, indicating an overbought condition.
3. Stochastic (5,3,3): Wait for the Stochastic to cross downwards, indicating a potential reversal from overbought conditions.
Place a sell order when all three conditions for a sell are met.
Buy Entry
1. Bollinger Bands: The price candle must touch or close below the lower Bollinger Band.
2. RSI (14 periods): The RSI value should be below 30, indicating an oversold condition.
3. Stochastic (5,3,3): Wait for the Stochastic to cross upwards, indicating a potential reversal from oversold conditions.
Place a buy order when all three conditions for a buy are met.
Re-entry:
You can re-enter the trade up to 3 times if the conditions are met again after an initial entry. For instance, if you entered a sell trade and the price meets the sell conditions again, you can enter another sell trade, but limit this to a maximum of 3 re-entries.
Exit Rules:
Take Profit and Stop Loss:
These levels should be set based on your risk management preferences. You can place them based on key support/resistance levels or fixed pips.
Expected profitability for this strategy 65-73%
Risk Management:
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Limit your exposure by risking only a small percentage of your capital on each trade.
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Adjust your position size according to your stop loss distance to maintain a consistent risk level.
This strategy can help you capture reversals at key levels, but it’s important to backtest and adjust it according to your trading style and market conditions. Always ensure you are following good risk management practices.
