Forex Strategy Battle of the Bands

Instaforex

Forex Strategy Battle of the Bands — This trading system was originally designed for trading in the securities market, but because of its simplicity and universality — moved to the forex market, and the reasons she impulsivity price movement and a few simple indicators forex, which are present in any Terminal Metatrader 4. The recommended time frame — from H1, the currency pair can be arbitrary.

For trade, we need the following indicators forex:

1. Simple Moving Average SMA (32) (applied to high) and a simple moving average SMA (32) (applied to Low) — form a channel on the chart moving averages.

2. Trend indicator Parabolic SAR (step 0.02, maximum 0.2)

3. Two simple moving average SMA (100) and SMA (200), applied to a Close — Additional indicators (recommended for use, but not required)

Rules for the conclusion of a deal to buy the strategy Battle of the Bands:

  • Price must close above the average SMA (1932) High — ie above the moving average formed channel.
  • Price is above the moving average 100/200 SMA — recommended operating conditions, but not mandatory.
  • Closing price of the bar should be higher than the opening price of the bar
  • Price must «penetrate» Parabolic SAR from the bottom up, ie Parabolic points should pereskachit top down — by price (it is on this candle)
  • If formed candle Dodge or Pin-bar — the signal should be ignored! If the closing price of the bar below the price bar opening — should wait for the next candle and make sure that all of the above conditions are met.

Forex Strategy Battle of the Bands

The rules for the transaction to sell at a strategy for Battle of the Bands:

Price must close below the average SMA (32) Low — ie below themoving average formed channel.

Price is below the moving average 100/200 SMA — recommended operating conditions, but not mandatory.

Closing price of the bar must be below the price bar opening

Price must «penetrate » Parabolic SAR downwards, ie Parabolicpoints should pereskachit the bottom up — above the price (it is on this candle)

If formed candle Dodge or Pin-bar — the signal should be ignored! Ifthe closing price of the bar above the opening price of the bar - you should wait the next candle and make sure that all of the aboveconditions are met.

Strategy Forex Battle of the Bands

Stop-loss immediately after the transaction is placed under the closest fractal (local minimum) below the average SMA (32) Low — for sale. Or above the nearest of a fractal (local maximum) above the average SMA (1932) High — for sale.

Once the price has gone in our direction and closed the next candle after the opening of the transaction - fix a profit of 50% (or 1 / 2) from an open transaction (or if you open such a deal two separate lots, then close one of them). Immediately after the closure of 1 / 2 of the transaction, transfer the balance of the position to breakeven!

Then our profitable stop-loss (or in other words, a Stop-trade), we move every time after the appearance of a new point indicator Parabolic SAR. This you can do at the opening of each new candle or use for this versatile trailing stop, which will make it for you automatically.

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