Double bollinger bands settings

Double Bollinger Bands (DBBs) Explained | hycukofu.tk

 

double bollinger bands settings

In addition to the standard Bollinger bands, whose settings are 20 periods and two standard deviations, Double Bollinger Bands add on the 20 period, one standard deviation, so it creates four bands, or zones. The two bands on the top are known as the uptrend zone; the two bands on the bottom are known as the downtrend zone. Jan 10,  · On October 25th last year (), a trading system named Double Bollinger Bands or DBB was introduced by Kamel (read this). This trading system is so popular and is used by so many traders on a daily basis. The most important feature of this trading system is that it is mechanical. It means it doesn’t need Continue reading How to Increase Double Bollinger Bands Trading . Double Bollinger Bands are 2 sets of BBs, using default settings set at the usual 2 standard deviation distance above and below the 20 period simple moving average line in the middle, as well as a second set of BBs plotted just 1 standard deviation above and below that central moving average.


Double Bollinger Bands with Slow Stochastic | Learn Forex Trading


It is either black or white. It means either a trade setup is formed which means you should enter the market, or there is no trade setup at all. Such a mechanical trading system is good for those who have no patience and knowledge for analyzing the markets and locating double bollinger bands settings trade setups based on the technical analysis or candlestick signals. It just tells them to enter a market or stay out. This is what you have to note if you want to use such trading systems.

The reason I am sharing this system here is that some people always ask about it. This system has been introduced to Forex traders as an ultimate trading system that makes money for them consistently. I just want to clarify that it is not the Holy Grail, and because it is mechanical, double bollinger bands settings, it can generate consecutive losses sometimes.

You just check the daily charts for few minutes per day, if there is any trade setups based on this system, you take double bollinger bands settings positions, set the stop loss and target orders, and come back the next day.

In most cases it means more losses. There is either a trade setup on the chart, so you take your position, or there is no trade setup, and so you check double bollinger bands settings chart the next day. It is not like that at all. There are only two conditions: 1 there is a trade setup formed on the chart, so that you take it, and 2 there is no trade setup on the chart, so that you check it again the next day.

All you have to do is adding two sets of Bollinger Bands indicator. The first one is set to 2 and the second one is set to 1. That is all you have to have on your charts. After adding the BB indicators, your chart should look like this: The outer BB has the default settings and its deviations is set to 2.

The Bollinger Middle Band will be the same, because deviations settings has nothing to do with it. We only use it to hold the positions to maximize our profit, but it has no role double bollinger bands settings forming the trade setups and taking the positions. Double Bollinger Bands Trading Strategy is good for trading the trending, as well as the ranging and sideways markets.

If so, you have a long trade setup buy signal. Please see the below chart. As you see, double bollinger bands settings 3 is closed above BB1 upper band, and at the same time the two previous candlesticks 1 and 2 are closed right below BB1 upper band. This is a long trade setup. It means you should buy at close of candlestick 3: Stop loss has to be set at the low price of the candlestick which has pierced the BB1 upper band I mean candlestick 3and the target can be at least twice of the stop loss size 2 x SL.

You can move the stop loss to breakeven if the price moves according to the trade setup for 1 x SL. For example, when your stop loss is 60 pips, then you can move the stop loss to breakeven if the price goes up for 60 pips.

This happens when the security is trending strongly: This also occurs when there is a strong uptrend and we are not already in: Note: When candlestick 3 is too long, double bollinger bands settings, you can set the stop loss higher than its low price, not to have a too wide stop loss, double bollinger bands settings. Candlestick 3 on the below chart has closed below BB1 lower band while candlesticks 1 and 2 have closed above it.

This is a short trade setup. Like the long trade setups, double bollinger bands settings, the stop loss has to be set at the high price of candlestick 3, and target can be at least twice of the stop loss size 2 x SL.

You can move the stop loss to breakeven if the price goes down for 1 x SL. How To Maximize Your Profit? As I explained above, this trading system is good in catching the trends. When there is a strong trade setup, you can also take two double bollinger bands settings with the same stop loss, when there is a trade setup based on the Double Bollinger Bands trading system. Set a 2 x SL target for the first position, and no target for the second one.

In case of a long position, hold the second position as long as the candlesticks form between the BB1 and BB2 upper bands, or above the Bollinger Middle Band. It means you should not expect to make hundreds of pips from each trade setup. You can trail the stop loss if you like, double bollinger bands settings. What Time Frame? Double Bollinger Bands Trading Strategy works on all time frames, but I use it on the daily and longer time frames, because it is easier, safer and more profitable.

Never think that you will make more profit if you apply this trading system on 5min or 15min charts. Trading the shorter time frames is nothing but headache, and you will not make more profit. I spend about minutes checking the charts every day, double bollinger bands settings, but I am more profitable than day traders who sit at the computer for several hours per day, every day.

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Double Bollinger Bands Strategy - Advanced Forex Strategies

 

double bollinger bands settings

 

Jan 22,  · Double Bollinger Bands with Stochastic is a reversal trading system based on two bolliger Bands and the slow stochastic oscillator. This strategy is pretty good for Forex instruments more than other other items like stocks because of the way that Bollinger Bands trade so it's very good works very well for hycukofu.tk: Learn Forex Trading. Mar 31,  · Pairing the Bollinger Band width indicator with Bollinger Bands is like combining the perfect red wine and meat combo you can find. In the previous section, we talked about staying away from changing the settings. Double Bollinger Bands are 2 sets of BBs, using default settings set at the usual 2 standard deviation distance above and below the 20 period simple moving average line in the middle, as well as a second set of BBs plotted just 1 standard deviation above and below that central moving average.