Bollinger Bands BreakOut Trading is a strategy based on the trend and momentum. The main indicator is Bollinger Bands filtered by IBS RSI CCI Filter Indicator. The IBS is based on CCI RSI and VKWB bands.
- Time Frame: 15 min or higher
- Financial Markets: any
This forex strategy is also good for trading with binary options high/low with expiry time 3 or 4 candles.
Sessions for trading M15 TF Chart are London and New York.
- Bollinger Bands: (20, 2)
- IBS RSI CCI indicator
- Commodity Channel Index
- When the price breakout the upper band of the Bollinger Bands and the IBS RSI CCI indicator, wait for the CCI line upward above 50 level to open BUY.
- When the price breakout the lower band of the Bollinger Bands and the IBS RSI CCI indicator, wait for the CCI line downward below -50 level to open SELL.
- Tips: not go on very long bars
- Trades in the direction of the main trend.
- Use a demo account or a small live account first to practice this trading system
- Place initial stop loss 10-15 pips below/above the bands of the BB.
- Make a profit with predetermined Profit Target that depends on time frame.