The Bollinger Bands Forex System represents a trend following forex and stock trading strategy for MetaTrader 4 users.
It combines BolliToucher with Bollinger Bands to send automatic alerts whenever the price breaks or rejects the dynamic support and resistance levels. The white dot around the price candles indicates a potential trend reversal.
Also, it applies the Round Price indicator on the main chart showing horizontal S/R levels. We’ll use this level as a reference to anticipate possible price-swinging areas.
The red/yellow curvilinear line at the bottom represents the STC Color indicator. It detects the trend reversal moments and filters the BolliToucher signals.
Moreover, you’ll find FXM-VC in the same oscillator window showing the current directions of market momentum. The black bars closing above the high or below the previous bar’s low define whether it is a bullish or bearish momentum.
In the above chart, the BolliToucher plotted a series of white dots below the lower Bollinger Band, indicating that the price rejects the dynamic support.
While the price pulls upwards from the Round-Price support, the STC Color line turns yellow, bouncing back from the oversold area.
Trigger long once the Bollinger Bands Forex System provides you the above confirmations. Exit buy whenever the STC color turns red after hitting the overbought zone.
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Target a sell setup when the price declines from the higher Bollinger Band and the BolliToucher launches dot signal above the price candle high.
Also, consider how the price reacts at the horizontal support/resistance zone for determining the order execution levels.
Like the above chart, we can trigger a sell when the price rejects the resistance, and the STC Color turns red at the +15 zone at the same time.