RSI and Bollinger Bands Trading

TheRSI is a quality indicator for trend. I believe this and i am going to explain another profitable way of

combining it with the Bollinger Bands for good result.

INDICATORS: Relative Strength Index, Bollinger Bands (all default Settings)

TIME FRAME: 4HR AND 30MIN (You could also use 30min and 5min)

Its very simple; apply the bollinger band to all time frames but its needed in 30min timeframe. In the 4hr

apply the RSI. When RSI is above 50, its uptrend and below 50 is down trend. Then move to 30min for entries.

While in the 30min time frame, in an uptrend, wait for price to close below the lower band of the Bollinger, then a close above the lower band will make your entry for LONG

RSI And Bollinger Bands MTF

While in the 30min time frame, in a downtrend, wait for price to close above the upper band of the Bollinger, then a close below the upper band will make your entry 

for SHORT

 

Exit Position

Profit Target on band middle band or profit target predetermined.

Stop loss pn the previous swing.

Share your opinion, can help everyone to understand the forex strategy.

For trade I recommend to choose Broker with MT4 >>