Toptahlil Bounce Foreign exchange Swing Foreign currency trading technique

There are many ways to approach or attack the market, different types of trading strategies and different ways to implement such strategies. Some traders break out of support and resistance, others prefer rebounding trend lines, others trading strategies, others trading medium reversals. Whichever approach you choose, as long as you master your craft, you can make money from the market. With this strategy, however, we will try to take trades based on bounces from dynamic support and resistance with a variation of the Bollinger band.

Bands and channel-based indicators

Bollinger bands are probably one of the most popular indicators that use channels or bands, although there are other different band-based indicators. They can differ in the way the tapes are calculated and plotted, but they work with the right parameters.

Band-based indicators are great for many reasons, but what I find most interesting is that due to the outer bands, these indicators tend to have dynamic supports and resistances that move with the average price. These outer bands could be used in different ways, but the most basic way to use the outer bands is to consider the price as overstretched and therefore reverse the mean or completely reverse the trend.

Trading strategy concept

Many retailers are familiar with the Bollinger Bands and their use. With this strategy, however, we will use a variation of the Bollinger band, the custom indicator toptahlil_bollinger_and_atr_band. This indicator has the regular Bollinger band, but also a second set of outer bands based on the Average True Range (ATR). This gives this indicator two outer sets of bands that we could use as a range for dynamic support or resistance.

We will trade bounces from this area if we discover a decent candle holder with wicks, which means rejection of these areas. We will only trade long wicks as these candles mean a quick shift in market sentiment, a shift that takes place in only one period or candle.

However, we will not start trading immediately when a pen candle appears. We will wait for the price to exceed the average price. The toptahlil_bollinger_and_atr_band has no center line. For this reason, we use a different indicator as the basis for our average price, the custom TMA indicator. This indicator is a kind of moving average that could be characterized as a smooth moving indicator.

Although we note a possible trade whenever the price bounces off the outer bands of the toptahlil_bollinger_and_atr_band, if we take the trade too early, we could still trade against the trend. Instead of trading immediately as the price bounces off the outer bands, if the trend change is confirmed, we will start trading by waiting for the price to exceed and close the custom TMA indicator.

Indicators

  • toptahlil_bollinger_and_atr_band: standard parameters
  • TMA: standard parameters

Time frame: 1 hour or 4 hour chart

Currency pair: any

Purchase (Long) Trade Setup rules

entry

  • The price should bounce off the area of ​​the lower toptahlil_bollinger_and_atr_bands
  • There should be a bullish pin bar candle or a candle holder with long wicks at the bottom, which means a price refusal
  • Wait until the price is above the custom TMA indicator and closes
  • Enter a purchase market order at the end of the candle

Stop loss

  • Place the stop loss under the candle

Take profit

  • Set the take profit price target to twice the risk for the stop loss

Sell ​​(Short) Trade Setup rules

entry

  • The price should bounce off the area of ​​the top toptahlil_bollinger_and_atr_bands
  • There should be a bearish candle or a candle holder with long wicks on top, which means a price refusal
  • Wait for the price to drop below the custom TMA indicator and close
  • Enter a sell market order at the end of the candle

Stop loss

  • Set the stop loss above the entry candle

Take profit

  • Set the take profit price target to twice the risk for the stop loss

Conclusion

Strategies that bounce off the outer bands of a regular Bollinger band are a common strategy, and many traders have been profitable. However, there are many cases where the rebound from the outer ligaments is not strong enough to reverse the trend. This could work if you trade a simple medium reversal strategy that only targets the middle of the bolling band or the average price.

If you want to close trades with a little more juice, you should close trades that actually reverse the trend. With this strategy, you can do this by making an entry after crossing the custom TMA indicator, which is our average price.

There will be many cases where the price could trigger a strong trend and if you let the profits run you could earn more than twice your risk. If you feel a little more aggressive and are aiming for higher returns instead of using a fixed take-profit target, you can instead use stop-loss trailing or close the trade due to signs of a reversal. However, this would be a more aggressive way, as the price could reverse on you or form a spread instead of completely reversing the trend.

Have fun trading !!!


Installation guide for Forex Trading Systems

The Toptahlil Bounce Forex Swing Forex trading strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.

The essence of this forex system is to transform the accumulated historical data and trading signals.

The Toptahlil Bounce Forex Swing Forex trading strategy offers the opportunity to recognize various peculiarities and patterns in price dynamics that are invisible to the naked eye.

Based on this information, traders can accept further price movements and adapt this system accordingly.

Forex Metatrader 4 trading platform

  • Free $ 30 to start trading immediately
  • No deposit required
  • Your account will be automatically credited
  • No hidden terms

xm no deposit bonus

How do I install the Toptahlil Bounce Forex Swing Forex trading strategy?

  • Download Toptahlil Bounce Forex Swing Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader directory / Experts / indicators /
  • Copy the tpl file (template) into your Metatrader directory / templates /
  • Start or restart your Metatrader client
  • Choose the chart and time frame in which you want to test your forex system
  • Right-click on your trading chart and move the mouse pointer over "Template".
  • Move right to select the Toptahlil Bounce Forex Swing Forex trading strategy
  • You will see that the Toptahlil Bounce Forex Swing Forex trading strategy is available on your chart

* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already integrated in the MT4 indicators of the MetaTrader platform.

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Toptahlil bounce forex swing forex trading strategy

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