Started by RoboForex, Apr 23, 2022, 11:41 am
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This article describes a plain short-term trading strategy based on the signals of the popular Bollinger Bands trend indicator. The article deals with the peculiarities of the strategy, its use in trading, and examples of buying and selling.
One-Two is a type of reversal trading systems based on Bollinger Bands signals. The strategy is easy to master and uses just one tech indicator with altered parameters. Note that it is a default indicator in almost all trading terminals, including MT4 and MT5.
The trading approach is based on using bounces of the quotes off the outer borders of the Bollinger Bands channel that act as dynamic support and resistance levels. After a bounce, the price is expected to return to the middle line of the channel.
For trading by the strategy, you can use currency pairs, oil, gold, and other commodities. Recommended TFs are M15, M30, H1, H4, and D1.
To search for trading signals by One-Two, you need to install two Bollinger Bands indicators with slightly different parameters on the price chart. On the popular MT4 and MT5 platforms, the indicators are installed via the Main Menu/Insert/Indicators/Bollinger Bands.
In the setting window, choose the following parameters:
Upon installing the indicators, you may start searching for One-Two trading signals.
Conditions of opening a buying position are as follows:
Conditions of opening a selling position are like those:
The One-Two trading strategy is based on the signals of a popular trend indicator Bollinger Bands with different parameters. The strategy is based on reversals of the quotes from the borders of the price channel that are used as dynamic support/resistance levels.
This strategy is rather universal and can be used for various instruments and on various TFs. Before trading for real, practising on a demo account is strongly recommended.
The post How to Trade by One-Two Strategy appeared first at R Blog - RoboForex.
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