BEST COMBINATION OF TECHNICAL INDICATORS

15M USDJPY SCALPING STRATEGY
Best Strategy Multiple Indicators
RSI Momentum Indicator - The Relative Strength Index is a momentum indicator and a leading indicator at the same time. We use the RSI indicator to identify possible overbought and oversold conditions in the market.
OBV – Volume Indicator - The OBV indicator is based on the idea that both the volume and the price activity are equally important. In this regard, the OBV combines both price and volume to show you the total amount of funds going in and out of the market. The main idea behind the On Balance Volume indicator is that the market price will follow where the volume flow is going.
Bollinger Bands – Trend Following Indicator - The Bollinger bands is the best trend following indicator that measures the volatility of any given market. It’s also the third indicator of our best strategy multiple indicators.
Buying and selling based on the Bollinger bands can be a very effective trading strategy especially if used in combination with other technical indicators.
Note* This strategy can be used on any time frame so go ahead and apply it to your preferred time frame.
Step #1: Price needs to Break and Close above the middle Bollinger Band
So the first trade confirmation we need is for the price to break and close above the middle Bollinger band. Once this trade condition is verified, we can check the other indicators for adding more confluence to our trade signal.
Step #2: Wait for the RSI indicator to trade above the 50 level if it doesn’t already.
During this step, we seek to find an agreement between what the Bollinger Bends is saying and the RSI own price reading. So, the breakout can be confirmed if the momentum is behind the move.
Usually, a RSI reading above the 50 level is considered as a positive momentum while a RSI reading below the 50 level is considered negative momentum.
Note* Not all the time you’ll see the RSI breaking above the 50 level at the same time as price breaks above the middle BB. Sometimes, we need to wait longer for the bullish momentum to show up.
Step #3: Wait for the OBV indicator to rise. Buy at the market once you see volume confirming the price.
Step #3: Wait for the OBV indicator to rise. Buy at the market once you see volume confirming the price.
Last trade condition before pulling the trigger is again easy to understand. We want to trade on the side with the smart money. In this regard, we look for evidence that the trade we want to take as real buying power behind it.
We can notice that the real volume only showed up later. It’s important to have patience and wait for the exact trade conditions to be satisfied before getting into a long trade.
Step #4: Hide your Protective Stop Loss below the lower Bollinger Band
Knowing where to place your protective stop loss is as important as knowing when to enter the market.
The logical place to hide your protective stop loss is below the lower Bollinger band. A break below the lower BB will invalidate our trade idea, and we want to minimize our losses.
Step #5: Take Profit when the price breaks below the lower BB
Our take profit strategy only looks at one indicator to signal us a possible exit zone. If we wait for confirmation from multiple indicators then we might as well give back some of our profits.
In this regard, the best way to take profits is when we see the price reversing. A break below the lower Bollinger Band is a good signal for a possible reversal, so we want to cash out our profits.
Note** the above was an example of a BUY trade using multiple technical indicators. Use the same rules for a SELL trade – but in reverse.

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Closed Trade