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Bollinger Band Strategies

Bollinger Band Strategies (Part-7)

               Bollinger Band Strategies (Part-7)

 

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A lot of thanks for visit earnmoneyfx.com

As a series part strategy of Bollinger Band Strategy, earnmoneyfx.com research team
suggests you to follow various type entry-exit strategies of Bollinger Brand as below:

1. Candlesticks Pattern with Bollinger Band
2. Double Top Chart Pattern with Bollinger Band
3. Double Bottom Chart Pattern with Bollinger Band
4. Reversal or Counter Candlesticks with Bollinger Band
5. Trend line Breakout with Bollinger Band
6. Swing Trading with Middle Band (20 Simple Moving Average) Bollinger Band
7. Walking with Bollinger Band
8. Ascending Triangle with Bollinger Band
9. Descending Triangle with Bollinger Band
10. Symmetrical Triangle with Bollinger Band
11. Flag Pattern with Bollinger Band
12. Channel with Bollinger Band
13. Candlesticks Pattern with Bollinger Band
14. Golden Cross with Bollinger Band
15. Death Cross with Bollinger Band
16. Short term & Midterm moving average cross with Bollinger Band
17. Multi time frame analysis with Bollinger Band
18. 200 Simple Moving Average with Bollinger Band etc.

 

 

Bollinger Brand Entry-Exit Strategy (Part -1) we have discussed about Candlesticks
Pattern with Bollinger Band and Double Top Chart Pattern with Bollinger Band.

Bollinger Brand Entry-Exit Strategy (Part -2) we have discussed about Double Bottom
Chart Pattern with Bollinger Band and Reversal or Counter Candlesticks with
Bollinger Band.

Bollinger Brand Strategies (Part-2)

Above link is for your ready references.

Bollinger Brand Entry-Exit Strategy (Part -3) we have discussed about Trend line
Breakout with Bollinger Band.

Bollinger Brand Strategies (Part-3)

Above link is for your ready references.

Bollinger Brand Entry-Exit Strategy (Part -4) we have discussed about Swing Trading with
Middle Band (20 Simple Moving Average) Bollinger Band.

Bollinger Brand Strategies get profit (Part-4)

Above link is for your ready references.

Bollinger Brand Entry-Exit Strategy (Part -5) we have discussed about 200 Simple Moving
Average with Bollinger Band.

Bollinger Band Strategies get profit (Part-5)

The above link is for your ready references.

Bollinger Brand Entry-Exit Strategy (Part -6) we have discussed about Walking with
Bollinger Band.

Bollinger Brand Strategies (Part-6)

Above link is for your ready references.

If you missed all or anyone, Earnest request you to visit Bollinger Band Entry-Exit
Strategy (Part -1), Bollinger Brand Entry-Exit Strategy (Part -2), Bollinger Band Entry-Exit
Strategy (Part -3), Bollinger Brand Entry-Exit Strategy (Part -4), Bollinger Band Entry-Exit
Strategy (Part -5) and Bollinger Brand Entry-Exit Strategy (Part -6) in earnmoneyfx.com

 

These article earnmoneyfx.com research teams try to cover another strategy as below.

*** Ascending Triangle with Bollinger Band Entry-Exit Strategy ***
*** Descending Triangle with Bollinger Band Entry-Exit Strategy ***
*** Symmetrical Triangle with Bollinger Band Entry-Exit Strategy ***

As per earnmonreyfx.com research team demo test, this strategy works well any
timeframe and any pair.

 

For good success rate, we suggest you One Hourly, Four Hourly, Daily timeframe and major
pair (EURUSD, GBPUSD, AUDUSD, NZDUSD, USDCHF, USDCAD, USDJPY, EURJPY,
GBPJPY), XAUUSD, XAUEUR, CRUDE OIL, and S& P500

 

Let’s explore all ……….

For your soft reminder, Before enter a deep discussion about Bollinger Band strategy, its
important us to know what is Bollinger Brand and How to calculate Bollinger Band.

What is the Bollinger Band?

Bollinger Band was developed by John Bollinger. Bollinger Band® is a registered
trademark by John Bollinger.

Bollinger Brand is very simple. It has three parts. Upper Band, Middle Band, and Lower
Band.

Upper Band and Lower Band are a volatility-based band. Volatility based on standard
deviation. By using standard deviation volatility increases and decrease. Usually, standard
deviation 2 set in the upper brand and lower brand.

When volatility increases the band automatically widen and when volatility decreases the
band automatically contract.

Middle Brand is 20 Simple Moving Average. Simple Moving Average use the standard
deviation formula thus 20 Simple Moving Average use Bollinger band as a middle brand.

Calculation of Bollinger Band:

 

* Middle Band = 20-day simple moving average (SMA)
* Upper Band = 20-day SMA + (20-day standard deviation of price x 2)

 

Please note, Bollinger Band (20,2) is built-in setup by Jhon Bollinger. But it’s not
mandatory to set up by build. You can change as your choice. But one thing you have to
know that most of the trader setup Bollinger Brand as a build-in thus its show buy or signal
similarly most of the trader. If you want to change the build-in setup, at first you have to specialists
in Bollinger Brand strategies. Otherwise more chance to hit stop loss. It will be best if you
with the crowd.

As per John Bollinger suggestion,

You can set standard deviation multiplier 2, where the simple moving average is 20 and
The standard deviation value is 20.

You can set standard deviation multiplier 2.1, where the simple moving average is 50 and
The standard deviation value is 50.

You can set standard deviation multiplier 1.9, where simple moving average is 10 and
The standard deviation value is 10.

How to set up Bollinger Brand in Metatrader4:

Open Metatrader4 > Insert > Indicator > Trend > Bollinger Band

 

 

Let’s explore ……….

Ascending Triangle with Bollinger Band Entry-Exit Strategy:

Before exploring the Ascending Triangle with Bollinger Band Entry-Exit Strategy at first we
learn to know what the Ascending Triangle is.

 

What is the Ascending Triangle: The Ascending Triangle is the symmetrical triangle variation.
Ascending triangles are bullish formation. When it creates in an uptrend, It’s most reliable.
The top part of the ascending triangle looks flat and bottom part created higher low several
times.

As above image of the Ascending Triangle Pattern, we found below things.
Price reaches a higher high position with an overbought situation.
Thereafter price fall in correction and turned back.
Few time later prices again try to touch previous high.
Thereafter price fall in correction and turned back.
Lastly, price able to create a new high, and bulls is taking full control.

Minimum two flat-top touches and two higher low required to create the
the ascending triangle is bullish.

 

 

Image 1:

 

Ascending Triangle with Bollinger Band Entry-Exit Strategy

Image point number – 1, Strong uptrend created where price created few higher high.

Image point number – 2, After strong uptrend price gone to correction. Price touches
three times in previous high but failure to breakout.

Image point number – 3, Price created three higher low. We concretely found an ascending
triangle in a chart. Also, price unable to breakdown successfully Bollinger Lower Brand. Now we
have to wait for a breakout.

Image point number – 4, Aggressive or conservative trader put their BUY STOP order 2
pips above of ascending triangle breakout candlesticks. Also Ascending triangle breakout
candlesticks breakout Bollinger Upper Brand which confluence had shown extra
confidence for BUY.

Image point number – 5, After hit BUY STOP order aggressive trader place STOP LOSS 2
pips below of ascending triangle breakout candlesticks. Conservative traders place STOP
LOSS 2 pips below of ascending triangle lower channel.

Image point number – 6, As per ascending triangle exit rules, we measure take profit
range.

Image point number – 7, Conservative or aggressive trader place their take profit level on
ascending triangle takes profit range or near swing high or 1 : 2 or 1 : 3 risk-reward ratio.

 

 

Descending Triangle with Bollinger Band Entry-Exit Strategy:

Before exploring the Descending Triangle with Bollinger Brand Entry-Exit Strategy at first
we learn to know what Descending Triangle is.

What is the Descending Triangle: The Descending Triangle is the symmetrical triangle
variation. Descending triangles are bearish formation. When it creates in a downtrend, it’s
most reliable.

The bottom part of the Descending triangle looks flat and upper part created lower high
several times.

As above image of the Descending Triangle Pattern, we found below things.
Price reaches a lower low position with the oversold situation.
Thereafter price up in reversal and turned back.
Few time later prices again try to touch previous low.
Thereafter price up in reversal and turned back.
Lastly, price able to create new low, and bears is taking full control.

Minimum two flat bottom touch and two lower high required for creating the
descending triangle in bearish.

 

 

Image 2:

 

Descending Triangle with Bollinger Band Entry-Exit Strategy

 

Image point number – 1, Strong downtrend created where price created few lower low.

Image point number – 2, After a strong downtrend price gone to reversal. Price touches
two times in the previous low but failed to break down.

Image point number – 3, Price created four lower high. We concretely found the descending
triangle in a chart. Also, price unable to breakout successfully Bollinger Upper Band. Now we
have to wait for break down.

Image point number – 4, Aggressive or conservative trader put their SELL STOP order 2
pips below of descending triangle break down candlesticks. Also descending triangle
breakdown candlesticks breakout Bollinger Lower Band which confluence had shown
extra confidence for SELL.

Image point number – 5, After hit SELL STOP order aggressive trader place STOP LOSS 2
pips above of descending triangle break down candlesticks. Conservative traders place
STOP LOSS 2 pips above of descending triangle upper channel.

Image point number – 6, As per descending triangle exit rules, we measure take profit
range.

Image point number – 7, Conservative or aggressive trader place their take profit level on
descending triangle takes profit range or near swing low or 1: 2 or 1 : 3 risk-reward ratio.

Symmetrical Triangle with Bollinger Band Entry-Exit Strategy:

Before exploring the Symmetrical Triangle with Bollinger Band Entry-Exit Strategy at first
we learn to know what the Symmetrical Triangle is.

What is Symmetrical Triangle: The Symmetrical Triangle is the area of indecision where
the present price is a pause and future direction is questionable. This time demand and supply
are equal.

 

Image 3:

Symmetrical Triangle with Bollinger Band Entry-Exit Strategy (BUY)

Image point number – 1, Strong uptrend created where price created few higher high.

Image point number – 2, After strong uptrend price gone to correction. Price created
three times in lower top but failure to breakout.

Image point number – 3, Price created three times higher bottom. We concretely found
the ascending triangle in a chart. Also price unable breakdown successfully Bollinger Lower
Brand. Now we have to wait for a breakout.

Image point number – 4, Aggressive or conservative trader put their BUY STOP order 2
pips above of ascending triangle breakout candlesticks. Also Ascending triangle breakout
candlesticks breakout Bollinger Upper Brand which confluence had shown extra
confidence for BUY.

Image point number – 5, After hit BUY STOP order aggressive trader place STOP LOSS 2
pips below of ascending triangle breakout candlesticks. Conservative traders place STOP
LOSS 2 pips below of ascending triangle lower channel.

Image point number – 6, As per ascending triangle exit rules, we measure take profit
range.

Image point number – 7, Conservative or aggressive trader place their take profit level on
ascending triangle takes profit range or near swing high or 1 : 2 or 1 : 3 risk-reward ratio.

 

 

Image 4:

 

Symmetrical Triangle with Bollinger Band Entry-Exit Strategy (SELL)

Image point number – 1, Strong downtrend created where price created a few lower low.

Image point number – 2, After a strong downtrend price gone to reversal. Price created
two times higher bottom which means indecision.

Image point number – 3, Price created two times lower top which means trend pause. We
concretely found the symmetrical triangle in a chart. Now we have to wait for break down.

Image point number – 4, Aggressive or conservative trader put their SELL STOP order 2
pips below of symmetrical triangle break down candlesticks.

Image point number – 5, After hit SELL STOP order aggressive trader place STOP LOSS 2
pips above of symmetrical triangle break down candlesticks. Conservative traders place
STOP LOSS 2 pips above of symmetrical triangle upper channel.

Image point number – 6, As per symmetrical triangle exit rules, we measure take profit
range.

Image point number – 7, Conservative or aggressive trader place their take profit level on
symmetrical triangle takes profit range or near swing low or 1 : 2 or 1 : 3 risk-reward ratio.

 

 

——- Thanks for giving your valuable time to read this article ——–
(To be continued)

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