Bollinger Bands Strategy – How to Use the Bands in Forex Trading

Bollinger bands are useful indicators that appear in most charting packages. First applied to stocks and commodities, they are now commonly used in Forex because they convey several useful pieces of information: trend, volatility and high/low price anomalies.

In most cases it means more losses. If so, you have a beautiful scalping opportunity. Profitable trading is the result of mastering the available trading tools.

What Is Double Bollinger Bands Trading Strategy?

Bollinger Bands Scalping Bollinger Bands are a great indicator to show market volatility of a current currency pair. We can use these to scalp a few quick pips when the market is ranging within a narrow band, and the bollinger band is ‘flat’.

Wer auf ein Chance-Risiko-Verhältnis von 2: DailyFX stellt Neuigkeiten zu Forex und technische Analysen, die sich auf Trends beziehen, die die globalen Währungsmärkte beeinflussen, zur Verfügung. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account.

Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. Die frühere Wertentwicklung ist kein verlässlicher Indikator für die zukünftige Wertentwicklung. Trading mit Bollinger Bands. Geben Sie bitte eine gültige E-Mail-Adresse ein. Bitte dieses Feld ausfüllen. Bitte auswählen Bitte wählen Sie ein Land. Look for an engulfing candlestick pattern where the market moves back toward the center of the Bollinger bands.

Look for the stochastic to change direction and move back to the center. When using support and resistance — are the Bollinger bands right around major support and resistance? If so, you have a beautiful scalping opportunity.

Bollinger bands are awesome at showing volatility. You will definitely notice when the bands get really close together. This means that the market has grown quiet. The good news is that calm usually precedes the storm. This means that the market is setting up to really start moving.

When you see Bollinger bands really close together, it is time for scalping breakouts. By Jason Van Steenwyk. This article is about Forex scalping techniques, specifically, scalping Bollinger bands. Does it matter to the strength of the setup if in the piercing line above, the upper shadow is also very long. What if both candles with beautiful size and long shadows were out of the BB range, and none made back or crossing into the BB range? What do you make out of the strength of such a setup?

Do you wait for another confirmation? Yes, it is a negative point for a long trade setup: What if the candlestick preceeding 1 was also outside the BB range? Say it went bearish body and shadows under the lower BB, and candlestick 1went up bullish strongly but still outside the lower BB? Would it have been a good setup? Is this a strong trade setup? What would you score it? Yes, it a score trade setup that we took it and we use it to compare the other short trade setups with: I suggest you to read all the articles listed on the below post carefully and patiently.

What I understand from the number of questions you ask while you have not read the articles carefully, is that you are excited and in a hurry. This is not good for a trader: Thank you for your wisdom. I really appreciate your helpful attitude and being extremely patient with me. You are right that I am excited and in a hurry to understand it.

I too have lost a lot of money, and we are not talking about just tens of thousands. In fact, I had decided to not trade again but to just invest using value investing. But I still got burnt on good companies because of there are just too many variables, e. Hence, I find currencies are much purer. And the market size is so large that it is not easily manipulated. Having said that, I have actually read so many of your articles.

Including the one you mentioned above. But because I read so much, whilst I may remember the pattern, I may not remember the currency pair and the dates.

Chris, your article https: I am actually talking about a bullish entry on Are you talking about the same thing? You did go long on This is question was to illustrate whether a breakout where the candles are still outside the range and not making it back into the BB range can still be considered as a strong trade? Now, you are right about not too hurry it up, and read up the articles patiently. A very important advise. I promise to remind myself on that. I am trying to do backtesting now, and see what the outcome is.

We also talked about that too strong weekend gap that GBP cross currency pairs opened with: It was a strong setup on the weekly, but on the daily it formed on a too bearish market when the So we avoided it on the daily. Dear Chris When we look for nearest resistant or support lines some of them turns from downside to upside the other opposite.

So if we think about going long or short which one we should consider? Both or opposite turning point? I hope explanation of my question is clear enough. English not my first language Thank you Dogan.

When there is a downtrend or range, a descending resistance is a better choice to go long. And visa versa for going short. Thank you for time to answer me.

I hope this is not a silly question. When I want to go long as using line chart over the price level there are some turning points. I know old support and resistance turning to to each other. Do I need to consider all this turning points as resistance or just only clockwise? Your candlestick explaination is simply superb, i have learned and practised in demo account and was successful.

How can I change that and see exactely what I see in your charts? Hello Chris, thanks for sharing your knowledge and experience. Just a quick question about engulfing strategy, does it also work on weekly and monthly timeframes? With my shortage of experience I think I will probably take 4 false signal because of many positive points. Too strong engulfing candle which is break BUB and engulf too many candles. Abandoned baby candle above BUB before engulfing candle 3.

There are signs of exhaustion and bears pressure. Consolidation for almost three weeks after 3 false signal, which I will consider like hesitation. Based on that market condition I will probably take this trade signal with riskier SL which is good and after being stopped out, continuation candle while gave me new signal to enter on trade.

It is formed by a too long candlestick with a considerable lower shadow. Indeed, it is not a false signal. It is a bad signal. Thank you so much Chris you are indeed a angel. I do have a question though. Please how can one use this strategies to trade shorter time frames like 5, 10, 15, 30 minutes also can this be applied to binary options? You can use the same way on any time frame or price chart.

Just keep in mind that shorter time frames are riskier to trade. Do you mean that, if the closing price of a candle is above an upper band, there is no band breakout? But the closing price of the third candle of the first example, it closed above the upper band, so how can it be a BB breakout?

Or were you doing simple technical analysis? Thank you very much. Oh sorry, english is not my first language. But, about the middle band, you said we can use it to trade continuation signals, but you also said that is risky or riskier than your normal trading. So, how can I trade continuation signals, if there are no strong reversal signals? Thanks a lot for your time and help. You trade the strong candlestick patterns that for as continuation setups.

The power of the candlestick pattern which is agreeable to the trend is important. What about the double bollinger bands? Everything about that system is explained here: Yeah, I read it all, and I think is the easier continuation signal? What do you think? Is the BB1 breakout, even realible for your sistem? My question is if a candle shadow break above the upper Bollinger, bullish or bearish candlestick, with out creating any pattern, how it can be explained. It is just a strong price movement and deviation from the middle band.

It means the related party is controlling the market strongly. When the shadow is too long, it means the opposite party is trying to take the control, but have not been successful yet. Thanks Chris you always put the psychology of trading and traders in your articles which make them unique. For the first time in my life I can get a little feeling that I really understand how market works. I just need to read your articles more carefully and do some highlights.

Your explanation of Bollinger bands in this article was awesome. It means a big Bullish pressure is imposed to the market suddenly.

What is happening Chris when the shadow occur above the candle? And the explanation is the same if the candle is Bearish? Basically do we have to follow the candles when breaking out the bollinger bands or the shadows are most important.

Hi Chris Once again i am surprised by your perfectly written Article. So many important sentences in this Article. Again your way of explaining the psychology of the market is so catching for me. Please start from here: The stock ex tcs has reached the upper band ,still it is bullish one or some reason like some profit booking in tcs can reduce the stock little lower or the index like Nifty is consolidating so tcs can lower so that days the False signal is formed.

If Nift is up or tcs has some gud news it will bounce back. If you short that time that will hit your stoploss. Then only we can short. Hello Dear Chris I am Learning too much From Your articles but i am new learner so i am in little confusion after reading the analysis of strong piercing line pattern article that you said in above paragraph 2. Reversal trends 1st Paragraph how candle stick 1 and 2 make piercing line Pattern I mean in that pattern 1st candle is bearish and 2nd is bullish and close little below the 1st candle other wise it would be Bullish Engulfing…..

Can you suggest me how the Bolinger band average period and candle stick time 5 min,10 min,30 min ,1 hour chart for intraday trading. Now I use the Bolinger period average period as 12 days and 5 minutes candle chart for intraday trading in index. But some says the upper band is overbought area and lower band is oversold area.

I though have one question; Is this Training based on long term period traders, 1 hour, 4 hour,1 day? It is hard to check one chart by one chart especially during working hours. Appreciate if you could consider, thanks, Chin. About the bollinger bands, I have one question. For example, we know that if the bands are too close, it means that the interest on buying and selling is low.

But, what does it mean, when one band is downward, while the other is upward? Market indecision and high volatily? If a chart is volatile and is trending down strongly, but the lower band points up, it is because, after an high volatily, the market is oversold, and will likely bounce up from close support level?

How do the bands relieve it? This occurs usually when the price starts taking a direction suddenly after a while of moving sideways.

After few candlesticks, both bands will follow the price direction. It was among one of the old articles of this site. I am now reviewing and editing them.

I have added some more tips and delete the obsolete parts. I hope you are fine.