The Bollinger band is made from three lines plotted on the screen. Buy n shares at market. As for the take profit, a classical one would be when the price is reaching the opposite Bollinger Band. Figure 4 Chart by StockCharts.
When the strategy is incorrect, the bands are still broken and you'll find that the price continues its decline as it rides the band downward. Unfortunately, the price does not rebound as quickly, which can result in significant losses. In the long run, the strategy is often correct, but most traders will not be able to withstand the declines that can occur before the correction. The selling pressure was clearly in oversold territory.
The strategy called for a buy on the stock the next trading day. Like the previous examples, the next trading day was a down day; this one was a bit unusual in that the selling pressure caused the stock to go down heavily. The selling continued well past the day the stock was purchased and the stock continued to close below the lower band for the next four trading days.
Finally, on March 5, the selling pressure was over and the stock turned around and headed back toward the middle band. Unfortunately, by this time the damage was done. The strategy calls for buying Apple shares on December The next day, the stock made a move to the downside. This is case where the selling continued in the face of clear oversold territory.
During the selloff there was no way to know when it would end. There are times, however, when the strategy is correct, but the selling pressure continues. During these conditions, there is no way of knowing when the selling pressure will end. Therefore, a protection needs to be in place once the decision to buy has been made.
The strategy correctly got us into that trade. Both Apple and IBM were different because they did not break the lower band and rebound. Instead, they succumbed to further selling pressure and rode the lower band down. This can often be very costly. Sellshort n shares at market. Sell at Average [ 14 ] close limit. Exitshort at Average [ 14 ] close limit. Leo 5 months ago. Leo Does it opens pending orders? Mattzi Dont know, all i can see is that it opened an order yesterday in backtest but not live.
Francesco78 8 months ago. JanWd You might try to use this strategy for platinum, looks good for the short run. PaulFM Hi Francesco, nice strategy. Do you know if there are any members on this site that sell pro ALE Hello Paul, please visit my website: Bollinger TrendCatcher 15min bollinger bollinger bands trend following. Kris75 Hi Grahal, What about making the same great work you did with the snipet on google doc but ALE 9 months ago.
Você tem alguma das suas estratégias operando em Modo R Alai-n Merci pour ce travail C'est ma première participation sur prorealcode, merci pour à toi pour ton co Nicolas 11 months ago. Squeeze Light bands bollinger bollinger bands keltner squeeze. Nicolas Je viens de vérifier, elles y sont pourtant? Nicolas 12 months ago.
Je ne suis vraiment pas bon dans Wiezman74 any chance you can email me this indicator for MT4,, can't get the code to work.. Nicolas This website is dedicated to prorealtime programming.
But you can ask for custom programming Très utile dans une technique de retournement. HeikinAshi thank you for this very interesting indicator Nicolas! Wilko 12 months ago. As simple as it gets: Wilko In answer to SAM: This is a strong reversal signal that identifies a possible "buy-in" point.
The existence of price chart patterns such as double tops and double bottoms can help identify buy and sell opportunities. When a rate reaches the highest level that the market is willing to pay - that is, the resistance level - the rate usually holds at the level creating a second plateau more, or less equal to the previous level.
This is the second part of the double top and if the rally is to be extended, the second top may be slightly higher. If the subsequent top is lower, this is seen as a signal that a rate reversal is imminent as traders sell their positions, or short the currency pair outright in anticipation of a drop in the exchange rate.
A double bottom is basically the same as a double top, but is seen as a signal that the support level for an exchange rate has been reached resulting in an increase in the rate.
This is because once the market is prepared to support the rate from dropping further, buyers enter the market in an attempt to buy into the currency pair at a low point prior to an upswing.
In this example, after several closes below the support level, the exchange rate reversed its direction shortly after posting a double-bottom. A double-top signified the end of a series of intra-period closings above the top band the resistance level indicating a rate reversal. John Bollinger believed "20,2" to be the optimal setting for most situations. In this example, the settings in the top left corner are circled.
These numbers indicate the time periods used to calculate the moving average "20" and the standard deviations away from the moving average to position the upper and lower bands "2".
With the OANDA platform, you have the ability to experiment with these settings, but please keep these two points in mind if you do experiment:. Keep most of the exchange rate fluctuations within the bands. If spot rates break through the bands too frequently, it will become impossible for you to distinguish between a typical fluctuation and a possible reversal signal.
If market rates rarely break the bands, consider reducing the number of reporting periods for which the average rate is calculated. Develop your trading strategy and learn to use trading tools for market analysis. Learn the skills necessary to open, modify and close trades, and the basic features of our trading platform. Price Chart And Patterns.
A trading strategy can offer benefits such as consistency of positive outcomes, and error minimization. Technical analysts track historical prices, and traded volumes in an attempt to identify market trends. They rely on graphs and charts to plot this information and identify repeating patterns as a means to signal future buy and sell opportunities.