EURUSD

Easy to trade successful strategy for EU 15 minute chart.

Indicators

Bollinger Bands and ADX
Why Bollinger Bands?

Bollinger Bands is a technical analysis indicator created by John Bollinger in the 1980s. The bands
consist of a moving average and a standard deviation above and below the moving average. Typically,
Bollinger Bands are set at 20 period, 2 standard deviations which means that the value of the upper
band is 2 standard deviations above the moving average. The lower band would be 2 standard
deviations below the 20 period moving average.

In the “X-Treme Fade” strategy, we use 2 sets of Bollinger Bands:
20 period, 2 standard deviation
20 period, 3 standard deviation
In statistics, 95.45% of values are suppose to lie within 2 standard deviations of the average while
99.73% of all values are suppose to lie within 3 standard deviations of the mean. In plain english, this
means that a move to the 2nd standard deviation Bollinger Band is rare but a move to the 3rd Bollinger
Band is even rarer.
Our X-Treme Fade strategy looks for the EUR/USD to make an extreme move on a short term time
frame (15 minute chart) by hitting the 3rd standard deviation Bollinger Band.
BUT THAT’S NOT ALL!
Before picking a top or bottom, we want to wait for the EUR/USD to close above the 2nd standard
deviation Bollinger Band for a long trade and below it for a short trade - this is important because it
confirms that the previous move in the EUR/USD is losing momentum.

Why Average Directional Index (ADX)?
The Average Directional Index or ADX measures strength of trend and when picking tops and bottoms,
we do not want the strength of the trend to be overly strong. Therefore, we want the ADX “smoothing
line” which is set at 14 to be less than 25.
ADX setting = 14
Look for ADX < 25

Long Trade Guidelines
*Only look for setups between 4am to 12pm ET (9 - 17 GMT)
1. Look for EUR/USD to close at or BELOW the 3rd standard deviation Bollinger
Band
2. Wait for EUR/USD to rally and close ABOVE the 2nd standard deviation
Bollinger Band
3. Check to see if ADX < 25
If #2 and #3 are true, Buy EUR/USD
4. Place Stop* at 15 pips
5. Close half of position at +15, move stop on rest to breakeven (initial entry price)
6. Trail Stop on remainder of position by 15 pips

Short Trade Guidelines
*Only look for setups between 4am to 12pm ET (9 - 17 GMT)
1. Look for EUR/USD to close at or ABOVE the 3rd standard deviation Bollinger
Band
2. Wait for EUR/USD to fall and close BELOW the 2nd standard deviation
Bollinger Band
3. Check to see if ADX < 25
If #2 and #3 are true, Sell EUR/USD
4. Place Stop* at 15 pips
5. Close half of position at +15, move stop on rest to breakeven (initial entry price)
6. Trail Stop on remainder of position by 15 pips

With the compliments of

Boris & Kathy

I have used it before and works best in non-trending pairs.

I think it's straight up from here for GOLD no pullback to 1406 I think we are gonna see the biggest move up in gold than we have seen in the last ten years.

I love simple systems like this. I used to use ADX cross 20 with trend signal arrows for entry. And was making consistent returns with such system.

If it was a success then why don't you use it anymore?

I made consistently higher highs and lower lows I was getting ahead nicely. Then I stopped using it while I look at my system. I still have the indies on all my charts but don't look at them as complete system. The only problem I see is it shows u good entry then u have to trail guess where to get out. Trailing is a nightmare. I don't like guessing. I spent my time trying to understand something that gives the complete picture. Turn by turn analysis vs pay and prey lol. Prediction vs Reaction I say projection vs reaction.

YUP

This must be accompanied by average earnings figures to be meaningful.

That's pretty cool. His Japanese must be great! So, how did his firm make him trade without looking at a chart?
one of my daughter's aunts also works for a well known company in Japan. "Nomura"

His Japanese or their English must have been great. I think they only had bar and point-and-figure but no candle charts back then?

you may be right or not.. i had this still unsatisfied.

the example is exaggerated at least grocery wise

Correlated pairs eur/usd, eur/jpy, and gpd/uad at a stand still. My fingers are crossed right now. But I think there should be some direction as London opens. Market is at a side line.

Before NFP scenario. London shake out the weaks with a move above to 1.3120 then massive move down below 1.3040.

WTF has this to do with forex?!

hey there trader!!

Can anyone help on how we could determine if we have a good
deviation with a good revision number in news release.. do anyone knows how?
please need help here thanks!!!!!

Spikes up now !!! watch out

Booooooooooom

Finally the retrace is coming...give me some short soon.