More Information About the Bollinger Band Strategy

Hey Guys, this Nathan Tucci, and I just wanted to give you a little more info on the Bollinger Band strategy I have been using. Some of you asked about the criteria I use when you read my last article (which if you haven’t seen you can click here to view) so I made a video to show you in more detail how I use this strategy.

[leadplayer_vid id=”50588DB36B16A”]

So here is what you need to know:

-Look for a pierce of the top or bottom of the Bollinger Band
-Wait for a strong bar going the opposite direction of the pierce
-Make your entry when the bar exceeds the previous high or low (depending on what direction you’re going)
-Set your stop-loss below or above the previous closed candle
-Set your limit at the 20 Point MA or just drag your stop behind it until you’re taken out

Thank you guys for following along, and I hope you can use this strategy to become a more successful trader!
I will be posting many of my Bollinger Bands on Twitter, so you can follow my signals and win with me!

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  • KL

    hi Nathan,
    this is very helpful and not rocket science , which is always good! the numbers don’t lie.
    Thanks again for your insight and willingness to share.
    KL

  • Ramneek

    Hi Nathan…another question please…say if we see a piercing candle and the next strong bar in the opposite direction of the pierce; and are stopped out on the following bar; would u still recommend taking trade on the next bar (if it’s going in our favour) or wait for another pierce? many thanks.

  • Ramneek

    Hi Nathan,

    Thanks for sharing. I am trying this on demo now. Which currency pairs do you recommend trading this strategy on?

  • fxtrader

    The bollinger bands give an air of flexibility which i like in trading…very easy to master. Interesting video and thanks for posting

  • daryl

    Thank you again Nathan.

  • Anonymous

    Hey Daryl,
    Thanks for following. I do wait for at least one decent candle going in the opposite direction of the pierce. I find price action to be extremely important and it is the basis for all of my trading, including the BB strategy. I put my stop above the piercing candle if it is a short and vice versa. Thanks again for watching. Let me know if this helps.

  • Anonymous

    Hey John, thanks for watching… I have not used Williams Percent Range, please tell me how you use it, I would love to add criteria to my strategy.

  • Anonymous

    Thanks Steven, I appreciate you following along!

  • Anonymous

    Oh, time frames, I use 4HR and 1D, but I know people who use as small as 5 minute frames to trade BB’s though I don’t recommend it. My recommendation, is the longer the time frame the more consistent this strategy is…

  • Anonymous

    Hello Alex, thanks for following along. As I mentioned in the video, I use the default settings, deviation of 2, 20point, applied at the close…

    My success rate has been about 60% winners averaging 3 times as big as losers.

    As far as the squeeze, I do not pay attention to it, unless it is in a very close channel, then I will ignore an entry signal.

    What do you mean by anomalies?, There are definitely losers if that’s what you mean…

  • Anonymous

    Hey Carl, thanks for following along and your input. I absolutely agree with you! I love trends, I love them a lot. I ALWAYS want to be on the side of the trade that the longer time-frame charts are going in, so yes, that would be a great way to filter trades, and I didn’t want to make the video really long, so I didn’t get into all of the things I check, but when I make a trade using BB’s I always check 2 time frames above my trade to make sure that neither one of the larger time-frames are going against my entry.

    Does that make sense?

    Thanks again for watching!

    Nathan

  • Anonymous

    Great question, Michael. And you are right, some show signs of reversal near the top band and then continue upward. There are a few ways you can do it. One, you can drag a stop at a predetermined pip-amount on every trade (say fifty), and then if the pullback is less than fifty pips you will end up making those profits and if it is more, you will obviously be taken out, hopefully with still a nice a profit.

    Another way, is as you mentioned, to use the middle band as a guideline and if the pullback does not pierce that band you will be fine. Be careful with this one though, because if the surge is 200 pips above the middle band, it will turn eventually and that is a lot of profit to lose.

    The third way to do it is to drag a stop pretty close, say 25 pips, and if you get taken out by a reversal, you can wait for another bar going in your initial direction and re-enter. This can often make you a lot of pips, but is dangerous because that second bar may not be the start of a new surge at all, and we don’t want to lose the profits we already made on a given trade.

    The way I like to do it, is to drag my stop behind it, and if I start to see a reversal, I take half the lot size off for my profit, and give the second half room to breath and hopefully run for a huge gain.

    Does that help at all?

    Thanks for reading, Michael

  • Anonymous

    That is a shame! Please give me your email and I will try to send you a file with the video contained.

  • Steven

    This is an interesting video, I will try it on demo account to start.  Very simple like you say.  It’s deserve a try.

    Regard,
    Steven

  • Anonymous

    You are very welcome, Lyle!

  • Anonymous

    Hey Herb, you are right. The simplicity is what I love about it. However, don’t be fooled, there is no “easy” or “magic” way to make money in the Forex market. This strategy will only work if you filter out bad trades and use good money management.

    Thanks for following along and good luck, Herb!

  • Nice and simple, thanks for sharing