So this is a quick example of how I use Bollinger bands to trade.
I use standard settings on the bands and look for rejections from the top and bottom of them.
Now, you will see lots if false rejections from these areas. Thats why I only trade outside day bars which have shown rejection from the top or bottom band. The days bar needs to complete engulf the previous days, I'm not worried about wicks, purely the high and low of the day.
If we add the RSI2 to the chart as discussed previously you will see that is also oversold given us confluence.
I usually place my first TP just above the previous swing high which I've highlighted in green. My second TP will be left running until I see a significant rejection or turn in the market, the second TP is always subjective. I place my stop below the low of the candle.
Time frames: 15min, 1 hour, 4 hour, daily, weekly
Pairs: EURUSD, USDJPY, GBPUSD
Give it a go and see if it works for you.
I use standard settings on the bands and look for rejections from the top and bottom of them.
Now, you will see lots if false rejections from these areas. Thats why I only trade outside day bars which have shown rejection from the top or bottom band. The days bar needs to complete engulf the previous days, I'm not worried about wicks, purely the high and low of the day.
If we add the RSI2 to the chart as discussed previously you will see that is also oversold given us confluence.
I usually place my first TP just above the previous swing high which I've highlighted in green. My second TP will be left running until I see a significant rejection or turn in the market, the second TP is always subjective. I place my stop below the low of the candle.
Time frames: 15min, 1 hour, 4 hour, daily, weekly
Pairs: EURUSD, USDJPY, GBPUSD
Give it a go and see if it works for you.