Revised Bollinger Bands Trading System

Hey Traders,

Today I wanted to share my revised Bollinger Bands Trading Strategy with you.

I love using the Bollinger Bands as a mean reversion trading system (when price touches or closes outside of the upper/lower bands). However, we know during volatile trending markets you can get caught out.

This is why I've created a system that uses Bollinger Bands to IDENTIFY A PULLBACK in the trend. Using this reduces the signals of the Bollinger Band and the signals it does make more reliable.

That is still not enough...

I also use the below technical tools below to determine the probability of a successful trade which helps determine my risk.

1) Divergence
2) Round Numbers
3) Ichimoku Kumo Cloud
4) MACD / Stochastics

The full outline of the strategy with examples is below. Let me know if you have any questions:



Thanks,
Zoheb.

Many tnx Zoheb,
Perfect ....

I'm long the EURCAD M1 Chart



Price above EMA and Cloud and entered on big bullish engulfing bar for a 1-1.

When price hit the lower BB - it was close to round number level and 200 EMA.

BB is simply the best indicator to show you what's happening at the moment, especially on the 1m TF.
It adapts quickly to the price and helps to identify breakouts, continuations, determine low & highs.
Itself alone maybe not be enough to trade, but combined with a good traders skill, it's a real killer imo.

It is beautiful, especially in ranging markets to scalp.
And the trending ones, that rushes downward or upside, you can get an idea that the trend will end and a reversal might occur when price retraces back to mid BB etc.

My understanding of bullish divergence is where price is exhibiting lower highs but momentum is showing higher highs. The video example is actually demonstrating bearish divergence but the trend continues anyway. That is, the price exhibits higher highs but the momentum showed lower lows. Anyway divergence works more reliably when considered on a higher time frame to the trading time frame.

Yes the BB is a great tool. I'm looking at a lower timeframe trend strategy which uses BB retrace as the foundation to the strategy

Hey Gang,

In trying to minimize how much one has to evaluate on each candle, the attached indicator was created. It basically does the first 3 criteria (above/below 200EMA, above/below Ish cloud, upper/lower BB touch) and puts a blue arrow for long and red arrow for shorts on the next candle. By adding this to the chart, one can focus on the subjective decisions ('near' a 00 or 50, candle patterns like engulfing, stochastic values) for confirmation of trade entry.

The source is provided so it can be modified to fit your style. Please let me know what you think.

Cheers

Dear Ateam1964
Great Job ...
Many thanks for sharing your indicator. Please look at below image

And below signals should be valid as well ...

It looks like i have set to signal on close not on touch, so i need to fix that but it explains why wicks that break are not getting signaleed vs ones that close on the expected side of the appropriate band. Good catch and thanks for the info...i will effort a correction and repost when it is completed.