The Bollinger Bands, the RSI, and round number levels strategy
This strategy will help you identify situations when the price has deviated substantially from the norm and benefit from it.
Timeframe: all
Currency pairs: all
Market state: temporary price anomaly
Required indicators:
- Bollinger Bands (20, 2.5)
- RSI (14, 14, 2)
- Round number levels
In order to choose the correct entry point for your trading positions, use the following recommendations
Entry steps for a short position (Sell):
1. Make sure that the price closed above the upper Bollinger Band.
2. Check that the RSI is above 70.
3. Look for the first bearish closed candlestick.
4. Ensure that the candlestick closed near a round number level.
Stop Loss
Place Stop Loss above the previous swing high.
Take Profit
Take your profit when Risk-reward ratio reaches 1:1.5.
Entry steps for a long position (Buy):
1. Ensure that the price closed below the lower Bollinger Band.
2. Check that the RSI is below 30.
3. Look for the first bullish closed candlestick.
4. Make sure that the candlestick closed near a round number level.
Stop Loss
Place Stop Loss below the previous swing low.
Take Profit
Take your profit when the 4-EMA drops below the 10-EMA.
Download indicators settings to your desktop platform
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