We start looking for your entry points into the market. To do this, try different points of entry into the market and leave only those that you understand.
I propose to consider the point of entry into the market on the indicator Bollinger band. We will not study its meaning and calculation formula, because you can find this information yourself on the Internet.
Select timeframe and indicator parameter
To work with the Bollinger band indicator, you need to choose the right parameter. A value of 100 with a deviation of 2 is suitable for timeframes below H4, and a value of 50 for D1 and higher.
Rules for entry into position:
We buy if:
We Sell if:
The main regularity of this entry point is to enter the trade after a strong impulse on the new wave.
In its pure form, this entry point does not apply to trade, as additional filters are needed. But, it is needed as a simple and probable way to enter the market.
Exit position:
A probable exit from positions is possible at the intersection of the closing price of an asset of the upper / lower Bollinger bands.
I propose to consider the point of entry into the market on the indicator Bollinger band. We will not study its meaning and calculation formula, because you can find this information yourself on the Internet.
Select timeframe and indicator parameter
To work with the Bollinger band indicator, you need to choose the right parameter. A value of 100 with a deviation of 2 is suitable for timeframes below H4, and a value of 50 for D1 and higher.
Rules for entry into position:
We buy if:
- The closing price of the asset was below the lower Bollinger band (case 1);
After that, the asset's closing price crossed the middle Bollinger band from bottom to top (case 2);
Open a position to buy an asset after the second intersection of the middle Bollinger band from the bottom up.
We Sell if:
- The closing price of the asset was above the upper Bollinger band (case 1);
After that, the closing price of the asset crossed from the middle Bollinger band from top to bottom (case 2);
We open the position to sell the asset after the second intersection of the middle Bollinger band from top to bottom.
The main regularity of this entry point is to enter the trade after a strong impulse on the new wave.
In its pure form, this entry point does not apply to trade, as additional filters are needed. But, it is needed as a simple and probable way to enter the market.
Exit position:
A probable exit from positions is possible at the intersection of the closing price of an asset of the upper / lower Bollinger bands.