Strategy with the use of Bollinger Bands indicator for the currency pair GBP/JPY
Recommended timeframes M1
This strategy is based on the use of the technical indicator Bollinger bands with different periods of deviation in the settings on the chart with the period M1 for the currency pair GBP/JPY. The best trading time period with the use of this strategy in London, European, or American sessions. Choose a deviation of 2, 3, and 4 for each band in the settings of the indicator.
As soon as the chart is set for the trading position, we will follow the following instructions:
The conditions described below and shown in Fig.1 will act as a signal to open long positions (Fig 1):
- The price has reached the bottom line of the indicator with the deviation 2 (red line of the indicator on the fig.), or the price is traded between the lines of the indicator with the deviation of 2 and 3 (red and blue lines on fig.)
Stop Loss is set 2 points below the nearest low of price or upon your own discretion.
Take Profit is set 15 points above the opening price or upon your own discretion.
Fig.1 On the chart with the period M1 marked signals for opening long positions satisfy the conditions of the trading strategy
The conditions described below and shown in Fig.2 will act as a signal to open short positions (Fig 2):
- The price has reached the upper line of the indicator with the deviation 2 (red line of the indicator on the fig.), or the price is traded between the upper lines of the indicator with the deviation of 2 and 3 (red and blue lines on the fig.)
Stop Loss is set 2 points above the nearest high of a price or upon your own discretion.
Take Profit is set 15 points below the opening price or upon your own discretion.
Fig.1 On the chart with the period M1 marked signals for opening short positions satisfy the conditions of the trading strategy.