BOLLINGER-RSI DAY-TRADING STRATEGY
Trade the Forex majors by combining the Bollinger Bands and RSI
■ Style: Day-Trading Strategy
■ Name: Bollinger-RSI Trading Strategy
■ Forex Majors
■ M5 timeframe (5-Minutes)
■ 5-7 daily trades
INDICATORS & SETUP
As the name of the strategy suggest we shall use two indicators, Bollinger Bands and RSI. This is an easy to implement trading strategy which may prove considerably profitable given the right market conditions.
Setting the Bollinger Bands and RSI:
■ Bollinger Bands
(i) 12 Periods instead of the standard 20 periods
(ii) Deviations 2
(iii) Shift 0
-The standard settings (14,9)
This is how you may implement the Bollinger-RSI Day-Strategy which can also be used as a scalping strategy.
■ (↑) Long Trades
When EURUSD reaches the lower Bollinger Bands and RSI is found 30 or lower you execute a Long (bullish) trade.
■ (↓) Short Trades
When EURUSD reaches the upper Bollinger band and RSI is 70 or higher you execute a Short (bearish) trade.
Setting the Bollinger-RSI Scalping Strategy:
■ Take Profit: 50-70 pips
■ Stop-Loss: 20-25 pips
■ Profit/Loss Ratio: 2.5
CHART: Bollinger-RSI Day-Trading
■ Bollinger-RSI Day-Trading Strategy