You can now download Bounce Bollinger Band MT4 Forex Trading Strategy for free on AtoZ Markets indicators gallery.
Bounce Bollinger Band MT4 Forex Trading Strategy determines if the price is starting to bounce off a certain area. Here, we will be using two Bollinger Bands with settings of 20 SMA, 1 standard deviation (gold), and 2 standard deviations (green). The reason why we are calling it Bounce Bollinger Strategy is because instead of looking like a pipe, the Bollinger Bands resemble our intestines more.
So, the way that this strategy works is that we will be looking for bounces off the Bollinger Bands with a standard deviation of 1. This will be determined by price closing beyond the gold outer bands, then closing back in the Bollinger Band.
The green Bollinger Band with a standard deviation of 2 is just an additional confirmation and a confidence booster. If ever we see price bouncing off the green Bollinger Band, and closing inside the gold Bollinger Band, we would consider that a higher probability trade.
How to Use Bounce Bollinger Band MT4 Forex Trading Strategy
Buy Entry:
- Price should be above the 200 EMA.
- Coming from above, price should close below the lower band of the gold Bollinger Band.
- Price should then close above the lower band of the gold Bollinger Band.
- Enter a buy market order on the close above the lower band of the gold Bollinger Band.
Stop Loss: Set the stop loss at the low fractal formed by the bounce.
Exit: Trail the stop loss on the middle line of the Bollinger Band, which is a 20 Simple Moving Average (SMA).
Sell Entry:
- Price should be below the 200 EMA.
- Coming from below, price should close above the upper band of the gold Bollinger Band.
- Price should then close below the upper band of the gold Bollinger Band.
- Enter a sell market order on the close below the upper band of the gold Bollinger Band.
Stop Loss: Set the stop loss at the high fractal formed by the bounce.
Exit: Trail the stop loss on the middle line of the Bollinger Band, which is a 20 Simple Moving Average (SMA).
Try the indicator on a free trading account with an AtoZ Approved broker:
How to download and install an indicator
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “Bounce Bollinger Band MT4 Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by Mark. AtoZ Markets does not carry any copyrights over this trading tool.
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