FREE DOWNLOAD “High Accuracy Bollinger Bands Forex Trading Strategy with Trend Edge Filter” – Bollinger Bands is one of the popular technical analysis tools, where three different lines are drawn, with one below and one above the security price line.
Bollinger Bands shows the levels of different highs and lows that a security price has reached in a particular duration and also its relative strength, where highs are near to the upper line and lows are near to lower line.
For different securities, different variable settings can be chosen.
Typically traders use 20-day simple moving average with a standard deviation of 2. Some traders may use exponential moving average too.
- Time Frame: M5 or higher
- Currency Pairs: Any
- Bollinger Bands
- Trend Edge
- Forex Trend
- SFET V PODVALE
- Williams’ Percent Range
Many traders believe that Bollinger bands are an accurate indicator of market volatility.
If the bands are wider, it means that a market is more volatile; while narrower bands mean that a market is more stable.
Traders also look for Bollinger ‘squeezes’ and Bollinger ‘bounces’, which are used as indicators for levels of support and resistance.
Squeezes – when the upper and lower band contract toward the moving average – could show that there is about to be a breakout of the asset’s price. Conversely, bounces – which occur when the price movement hits the upper band and bounces back down – might be indicative of an upcoming retracement.
However, just like other indicators, Bollinger bands are not always 100% accurate. The information they provide should be used in conjunction with other forms of analysis.
- Download TraderVersity.Com-BollingerBandsTrendEdgeSystem (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “TraderVersity.Com-BollingerBandsTrendEdgeSystem.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right-click on your trading chart and hover on “Template”
- Move right to select TraderVersity.Com-BollingerBandsTrendEdgeSystem
- You will see “Bollinger Bands Forex Trading System with Trend Edge Filter” is available on your Chart
- Bollinger Bands: Price break the upper band
- Trend Edge: Green signals
- Forex Trend: Green Signals
- SFET V PODVALE: Green signals
- Williams’ Percent Range: Upward and above level -55
- Bollinger Bands: Price break the lower band
- Trend Edge: Red signals
- Forex Trend: Red Signals
- SFET V PODVALE: Red signals
- Williams’ Percent Range: Downward and below level -45
- Pros of Bollinger Bands
Bollinger bands can be useful indicators of a trend in a market – strong trends cause volatility, which is easy to see as the Bollinger bands widen and narrow.
When plotted automatically by a trading platform, Bollinger bands are very user-friendly and can add another dimension to chart analysis for a trader.
- Cons of Bollinger Bands
As a lagging indicator, Bollinger bands can’t predict price patterns but instead, they follow current market movements. This means that traders might not receive signals until the price movement is already underway.
It is also worth noting that John Bollinger – the man who invented Bollinger bands – has said that they should be used in conjunction with other forms of technical analysis and that they are not fool-proof or fail-safe indicators of the market.