This technique is for those who want the most simple method that is very effective. It is BEST traded during the busiest trading hours, 3am to 12am EST NY time. This method doesn't work in sideways markets, only in volatile trending markets.
Time Frames: 1, 5, 10, 15 ,30 min.
Currency pairs: majors.
Other Chart indicators:
Here's the strategy:
Enter a long position when the black 3 has crossed up through the red middle band MA. At the same time, the Awesome should be approaching or crossing it's zeroline, going up. This is indicated by "Buy" alert.
Enter a short position when the black 3 has crossed down through the red middle band MA. At the same time, the Awesome should be approaching or crossing it's zero line, going down. This is indicated by the "Sell" Alert.
10-20 pips depending on pair or When turns a different colour.
HINTS: Best trades tend to occur when price reversing bounce off outer band and outside the Optional Squeeze indication.
- Added optional extra condition that the signal candle close price must stay within the Bollinger Bands. This helps remove some of the oversized signal candles, these candles have a lower success probability.
- Added Alarm system Alerts for BUY and SELL. This helps with automation, however, if you use the optional BB filter you will not get a complete buy/sell sequence, that is you may get multiple Sell's or Buy's before a change of direction.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.