Double Bollinger Bands Strategy
The Double Bollinger Bands Strategy is a versatile trend following volatility based indicator which is fairly reliable by itself. Developed 什麼是布林通道(Bollinger Band) by John Bollinger, the bands are made up of the outer bands which are placed two standard deviations off the 20 period moving average of price. The bands tend to widen when volatility increases and contract during low volatility or periods of consolidation. It is widely known that when the Bollinger Bands contract, they signal a potential volatility breakout in the next few sessions.
- Going long or 什麼是布林通道(Bollinger Band) short when prices reach the lower or the upper bands
- Going long or short 什麼是布林通道(Bollinger Band) when volatility declines, aka the Bollinger Bands contract
- Going long or short when price hits the upper or lower bands, also known as ‘walking the bands‘
Besides the above commonly used methods to trade Bollinger bands, using a double Bollinger Band is another unique way to trade with the bands. The main benefits this has to offer is the fact that by using a higher standard deviation based Bollinger Bands, traders are able to fine tune their entries. The double Bollinger Band tends to be used mostly a reversion to the mean methodology, meaning that when the higher standard deviation Bollinger band tends to contain the price extremes, it signals a reversal to the mean, which is nothing but the 20 period moving average.
The double Bollinger Band strategy as outlined below is ideal for traders at all levels and is relatively easy even for first time traders. With due practice, traders will be able to identify the set ups that occur which usually has a high hit rate of reaching the take profit levels.
How to Apply the Double Bollinger Bands Strategy
- As a general rule, traders should look for the following pattern or flow to occur before taking a position.
- Prices touch or close outside the outer Bollinger Band
- The next candle or up to two candles see’s prices closing back inside the inner Bollinger Band
- Enter the position on the next 什麼是布林通道(Bollinger Band) candle’s open, set the stop loss to the price level of the outer Bollinger Band on the signal candle and set the take profit to the mid Bollinger Band price level of the signal candle
The Double Bollinger band strategy works across any timeframe, but it is best advised to use this strategy on the 1 hour chart time frame. Traders should also bear in mind that only the most 什麼是布林通道(Bollinger Band) 什麼是布林通道(Bollinger Band) 什麼是布林通道(Bollinger Band) liquid currency pairs with the lowest spreads are considered while trading with this strategy.
Long Set up
Double Bollinger Band Long Setup
In the above chart, we notice that prices initially break close to the outer Bollinger Band. The subsequent candles continue to close outside the inner Bollinger band until we find the set up where prices close back (with the doji candle) inside the inner Bollinger Band. The long position is taken at the close of this candle with stops set to the corresponding price point of the outer Bollinger Band while targeting the corresponding price level of the middle Bollinger band.
Short Set up
Double Bollinger Band Short set up
In the following chart we first notice that prices break out strongly and close outside the outer Bollinger band. Two candles later, prices then close back inside the inner Bollinger 什麼是布林通道(Bollinger Band) Band. A short entry is taken on this close while the stops are placed at the corresponding high of the outer Bollinger Band. The take profit level is set to the corresponding price point of the middle band. Prices continue to hover above the entry for a while before eventually reaching the take profit level.什麼是布林通道(Bollinger Band)
Double Bollinger Band Strategy – Simple and efficient
The Double Bollinger Bands Strategy is very simple and efficient at best. By keeping the indicators to a minimum (two Bollinger Bands) and by exercising patience, waiting for the right set ups, traders will find the double Bollinger band not
18# Bollinger Bands and RSI Divergence Trading System
when price is above 250 sma green line ,80 ema above 60 line and stochastic is 什麼是布林通道(Bollinger Band) buy>green line.
Short Entry :
when price is below 250 sma line, 80 ema below 40 line and stochastic is sell
Stop loss for buy is 250 EMA Low, Stop Loss for Sell is 250 EMA High.
Take Profit are the bands or ratio 2:1 stop loss.
Rules 什麼是布林通道(Bollinger Band) for Buy Signal:
Price should hit Bollinger band’s oversold level in two places,什麼是布林通道(Bollinger Band)
one following the other. (Double bottom).
The double bottom should create a convergence in 什麼是布林通道(Bollinger Band) the RSI
indicator. If it didn’t, then it’s not a valid signal. Ignore it.
Rules for Sell Signal:
Price should hit Bollinger Band’s overbought level in two
places, one following the other. (Double top).
The double top should create a divergence 什麼是布林通道(Bollinger Band) in the RSI
indicator. If it didn’t, then it’s not a valid signal. Ignore it.
If the current trend is down, you can re-enter sell at any
overbought level of the Bollinger bands indicator. Your
stoploss should be the last support level. The same for up
trends, but your stoploss in this case should be the last
When you re-enter 什麼是布林通道(Bollinger Band) 什麼是布林通道(Bollinger Band) the market, make sure that the RSI
indicator is on your side. At or above 60 if the trend is up.
and at or below 40 if the trend is down.
Shane (Thursday, 27 September 2012 22:25)
this is a great system
Tran 什麼是布林通道(Bollinger Band) Van Tri (Wednesday, 21 October 2015 16:53)
gf (Saturday, 06 February 2016 16:什麼是布林通道(Bollinger Band) 什麼是布林通道(Bollinger Band) 04)
micheiln (Sunday, 07 July 2019 03:29)
sat (Monday, 08 July 2019 03:45)
i'm sorry it seems there is some error edit,
Bollinger Bands (250; 2); (250;2).
MA 250 Low; MA 250 High
Stochastic (100, 3, 3).
but your pict show Bollinger band and RSI, please correct it 什麼是布林通道(Bollinger Band) thanks
mamo (Saturday, 28 December 2019 13:33)
omlet (Tuesday, 14 January 2020 07:29)
thanks super strategy
Gujju (Thursday, 23 January 2020 06:57)
yellow (Sunday, 07 June 什麼是布林通道(Bollinger Band) 2020 10:43)
Trần Xuân Thắm (Monday, 15 June 2020 11:13)
i want this stragtegie
ajmeer (Wednesday, 17 June 2020 08:11)
Interested to apply in this strategy
xuân phó (Sunday, 26 July 2020 17:10)
Can you send this strategy for me, thanks
Arunkumar Shivaraman (Wednesday, 02 September 2020 19:57)
Victor (Monday, 28 September 2020 03:27)
how could i have this indicator?
keat (Monday, 26 October 2020 15:16)
Marcel (Saturday, 28 November 2020 21:58)
I suspect this is a copy paste error, meaning two strategies are mixed together. From what I understood is this strategy does not have an EA (Expert Advisor). You simply plot the RS (14) and Bollinger Bands on your chart and look for divergences in RSI together 什麼是布林通道(Bollinger Band) with spikes outside the Bollinger Bands as described in "Rules for Buy / Sell Signal". Keep in mind that RSI can stay overbought for a longer period of time when the trend is strong. A one off divergence does not necessary mean a trend change. It is a good countertrend strategy for pullbacks. Always look at the higher timeframe.
Algorithmic Trading in Python: Bollinger Bands
Bollinger Bands are a type 什麼是布林通道(Bollinger Band) of technical analysis indicator created by John Bollinger. The bands serve as a trading envelope that provide a feel for a relative measurement for high and low points 什麼是布林通道(Bollinger Band) that can be used as overbought and oversold levels.
Bollinger Bands typically include two 什麼是布林通道(Bollinger Band) boundary lines (upper and lower bands) and one moving average line (simple moving average).
Bollinger Bands: a Complete Guide for Traders exemplified by Good Crypto Charts
In this article, we dive into one of the most popular technical indicators of today. Bollinger Bands were created by John Bollinger in the 1980s. The Bollinger Bands, or BB bands , help to see if a market is oversold or overbought and help traders with analyzing if a market is trending or in a range. Based on these observations, trades can be made accordingly. Good Crypto offers traders over 5,000 cryptocurrency markets on 30+ exchanges, and Bollinger Bands can be enabled on every single one of them. Today, we will review what Bollinger bands are, and go deeper 什麼是布林通道(Bollinger Band) into the most common strategies and their application. Let’s begin!
What are Bollinger Bands?什麼是布林通道(Bollinger Band)
How are Bollinger Bands calculated? The bands consist of two elements or three lines.