08/12/ · Technical Strategy: Trading with Double Bollinger Bands. Unlimited viewing of the article/chapter PDF and any associated supplements and figures. Article/chapter can be printed. the double Bollinger Bands can also be very helpful in determining the market environment. One of the most commonly asked questions in forex is whether a Double bollinger band strategy pdf For any forex trader actively trading markets, it is always essential to know what the current trend is, and at least just as important (if not more) is whether or not a trend exists at all at any given time. This strategy is designed to give all this precise information based on which any trader can make a 08/12/ · Technical Strategy: Trading with Double Bollinger Bands. Unlimited viewing of the article/chapter PDF and any associated supplements and figures. Article/chapter can be printed. the double Bollinger Bands can also be very helpful in determining the market environment. One of the most commonly asked questions in forex is whether a
How to Increase Double Bollinger Bands Trading System Success Rate
Double Bollinger Bands or DBB is popular and used by so many traders on a daily basis. The most important feature of this trading system is that it is mechanical. To have a long trade setup, double bollinger bands strategy pdf, all you need is that the last closed candlestick closes above BB1 Upper Band while the previous two candlesticks should have already been closed below it.
To go short, the last closed candlestick has to close below BB1 Lower Band while the previous two candlesticks should have been closed above. Like all other trading systems, this trading system causes you to lose money sometimes.
In spite of this, experience shows that it has a good success rate and if you follow its rules properly, you will usually have some profit left at the end of the month. When this trading system was shared on LuckScout, some LuckScout users back-tested it. There are a few things that you can do to increase your success rate in trading with DBB system. Many a time, I hear that some of you lose money after taking a position based on DBB system, but when I check, I see that no trade setup was formed at all.
So, if you like to follow this system, the first and most important thing you must do is that you make sure that you have understood the rules properly and precisely and you are able to distinguish the setups, otherwise you will enter the markets when there is no setup at all. Please read the article to the end while you also think seriously about the eBook that I have explained about at the bottom of the article, double bollinger bands strategy pdf.
It means, double bollinger bands strategy pdf, if you go long you buy while the price is still below Bollinger Middle Band, chances are it makes the price bounce down and hit your stop loss. It is the same when you go short. In DBB system, a trade setup forms when Bollinger Middle Band is already broken. I mean when candlestick 3 closes above BB1 Upper Band to form a long trade setup, either this candlestick or one of the previous ones has already closed above Bollinger Middle Band.
However, there is another thing that we have to care about. It is the position of candlestick double bollinger bands strategy pdf and 2 with Bollinger Middle Band. Experience shows that in long trade setups that candlesticks 1 and 2 have closed above Bollinger Middle Band, price goes up better, and so these trade setups have a higher success rate. This is true that in order to have a long trade setup, candlesticks 1 and 2 have to be closed below BB1 Upper Band and candlestick 3 has to be closed above.
However, the trade setup works better and makes the price go up stronger if candlesticks 1 and 2 close above Bollinger Middle Band and below BB1 Upper Band they close between Bollinger Middle Band and BB1 Upper Band. Also, double bollinger bands strategy pdf, the closer the candlesticks 1 and 2 close prices to BB1 Upper Band, the stronger is the trade setup.
It means, it is better double bollinger bands strategy pdf the candlesticks 1 and 2 double bollinger bands strategy pdf prices not to be too far from BB1 Upper Band.
Sometimes, candlesticks 1 and 2 close as bearish candlesticks either below Bollinger Middle Band or a little above. Or one of them closes below Bollinger Middle Band and the other one above. And suddenly candlestick 3 goes up and closes above BB1 Upper Band, and so a long trade setup forms. This cannot be a strong long trade setup, because when the last 3 candlesticks close like this, it means the market is choppy and unstable.
It means bulls have not taken the full control yet, and so it is possible that the next candlestick goes down and hits the stop loss. On the screenshot below, I am showing you two long trade setups that are formed under the conditions I explained above specially the left one, double bollinger bands strategy pdf.
As you see in the left trade setup, candlesticks 1 and 2 are closed above Bollinger Middle Band the dashed line and so close to BB1 Upper Band. This is the example of a good and typical long trade setup. The second one the one at right is also good.
The problem is that candlestick 1 is bearish. In spite of this, its lower shadow reflects the bullish pressure which is good. It is still a good long trade setup, but the left one is much better.
Whenever you locate a long trade setup, compare it to the left trade setup on the below screenshot and take it if they look similar. Here is what I call a bad long trade setup below. It is still a trade setup, but it is not a good one.
Candlesticks 1 and 2 are closed almost below Bollinger Middle Band which means bears are still strong. It goes up only for 2 small candlesticks and then goes down strongly. The other thing is that candlestick 3 closed not only above BB1 but also above BB2 Upper Band.
It means this candlestick made the market a little overbought, and so a bearish counter-attack was possible:. It is the double bollinger bands strategy pdf with short trade setups. It is better to have candlesticks 1 and 2 formed below Bollinger Middle Band and above BB1 Lower Band when a short position forms. Also the closer the candlesticks 1 and 2 double bollinger bands strategy pdf prices to the BB1 Lower Band, the stronger the setup.
Everything I explained about long trade setups has to be considered for short trade setups too. Just the direction is opposite. Here is a good and typical short trade setup. As you see, candlesticks 1 and 2 closed above BB1 Lower Band. Their close prices double bollinger bands strategy pdf close to BB1 Lower Band and far away from Bollinger Middle Band. The screenshot below shows two bad short trade setups, double bollinger bands strategy pdf.
With the first one at the left, candlestick 1 is closed with a long lower shadow above Bollinger Middle Band. It means bulls still have the control. With the second trade setup rightdouble bollinger bands strategy pdf, candlesticks 1 and 2 are both bullish which is not good for a short trade setup:. Here is another bad short trade setup below. Candlesticks 1 and 2 are closed right below Bollinger Middle Band.
Besides, one of them is bearish and the other one bullish. They have long lower shadows too. These are all the signals indicating the bulls strength:. Going against strong trends has a higher risk, even when the trade setup is too strong.
It is recommended to avoid DBB trade setups when they are against the trends. Conversely, agreeable trade setups usually have much better results:. Technical analysis always help you take the setups with more confidence.
A DBB short trade setup formed after a support breakout, or a support breakout formed after a DBB short trade setup are much better to take, both for DBB and breakout traders:. At least, you can consider the three candlesticks close prices with more caution, and differentiate the good and bad setups from each other. It helps you have a much higher success rate. Using the double Bollinger band and an effective money management plan would really go a long way in making it work.
Double Bollinger Bands (Rule 3) ✫Forex Trading
, time: 3:35Double Bollinger Bands Strategy - Advanced Forex Strategies
19/03/ · Part 1 Is An Introduction To Double Bollinger Bands, Part 2 Is A Continuation That Presents Specific Rules And Examples, Part 3 (coming soon) Is A Quick Summary This is part of FXEmpire’s continuing series of special features on trader education, and provides a solid basis for understanding double Bollinger bands. For more detailed coverage and examples, see Chapter 8 of Double bollinger band strategy pdf For any forex trader actively trading markets, it is always essential to know what the current trend is, and at least just as important (if not more) is whether or not a trend exists at all at any given time. This strategy is designed to give all this precise information based on which any trader can make a Technical Strategy: Trading with Double Bollinger Bands. December DOI: /ch9. In book: Day Trading and Swing Trading the Currency Market: Technical and Fundamental
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