The “Bollinger Bands and MACD Indicator” trading strategy is one of the most popular strategy among professional traders. So, If you don’t know how to use it correctly, you’re in the right place. This video will highlight what makes this strategy special, including what it does, and how to use it correctly and effectively.
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- Use a demo account or a small live account first to practice this trading system
Bollinger Bands can provide invaluable signals for technical traders, and when combined with the Moving Average Convergence Divergence, or MACD indicator, gives traders insight into both volatility and momentum in the forex, stocks, commodities, and crypto market
- Download “TraderVersity-BBMACDsystem” (Zip/RAR File).
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
- Copy the “TraderVersity-BBMACDsystem.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-BBMACDsystem” trading system and strategy.
- You will see “TraderVersity-BBMACDsystem” is available on your Chart.
- Rule number 1: Identify a trending market using the MACD
- Rule number 2: Look for divergence in the histograms of the MACD (signalling potential breakout)
- Rule number 2: Look for entry on a break of the 20 moving average or trendline
- Rule number 2: Look for confirmation of a breakout via a breach of the Bollinger Band®, along with increased volatility (Bollinger Bands® expanding) and increasing momentum (longer histograms)
- Rule number 1: Identify a trending market using the MACD
- Rule number 2: Look for divergence in the histograms of the MACD (signalling potential breakout)
- Rule number 2: Look for entry on a break of the 20 moving average or trendline
- Rule number 2: Look for confirmation of a breakout via a breach of the Bollinger Band®, along with increased volatility (Bollinger Bands® expanding) and increasing momentum (longer histograms)
The combination of the Bollinger Band and MACD is not suitable for novice traders. Those that are new to forex, and stocks trading will require in-depth knowledge of both Bollinger Bands and the MACD.
Best CCI Scalping & Day Trading Strategy – Using the CCI as a trend indicator is ideal when combined with other trend indicators such as moving averages. This can help you to pick bottoms in a rally or tops in a decline. In other words, using the CCI as a trend indicator, you can time your entries within a trend.