The method has been trading under the Bollinger Bands and it represents this powerful indicator.
Sell Signal for the position
When the market is found close to the lower Bollinger Bands and Bollinger Bands begin to grow, the middle Bollinger starts moving up down, generated a signal for a drop in prices. SL (stop loss) is placed above the middle line of Bollinger bands.
￼￼￼Buy Signal for the position
When the price chart (market price) is near the upper line of the Bollinger Bands, and the upper and lower Bollinger began to spread to the middle Bollinger goes up generated by the price increase.
SL (stop loss) is usually placed below the middle line of Bollinger bands.
An essential role for closing trading positions in most cases corresponds to the situation when the line Bollinger Bands begin to gather. Open Bollinger Bands are confirmed by the intensity of the prevailing trend, while the narrower lines are monitored sideways trends.
The situation for entry points into the position:
When the market is found below the line of the lower Bollinger bands and decreasing candle breaks through the lower boundary line of the Bollinger Bands. It is needed to wait for the next growing candle that the candle’s body has gone through the line of the lower Bollinger bands up. The signal is generated by the buying position. When the market is above the upper boundary line of the Bollinger Bands it is needed to wait for the next downward candle.
Candle’s body pierces the upper Bollinger bands down. The signal is generated by the selling position. Projected TP (take profit) can be projected to a larger range of price movement. It requires a longer monitoring the development of trading transactions or application of other rules to protect capital. SL and TP always can be designed in terms of risk control in accordance with the money management rules on the trading account.
After breaking the upper Bollinger bands, prices began to fall so that it is possible to further decline. My recommendation would be selling position.
Bollinger bands (period 20, deviation 2)
Price has been broken lower Bollinger Bands at 1.10600 and continued to fall. It was signal for short trading strategy at 1.10600 entry points and exit points at 1.09600. Almost 100 pips per trade.