The moving average Bollinger Bands trading system is a manual trading system that combines moving averages and Bollinger Bands for foreign exchange market analysis.
Said to be a trading system, it is actually an indicator, an indicator that combines a moving average with Bollinger Bands. A series of settings were made on the chart when the indicator was initialized, and the template file of the trading system was omitted. Drag the indicator directly onto the chart when using it.
Everyone may be very familiar with the usage of moving average. The moving average Bollinger Bands trading system has designed two moving averages, the parameters of which can be set according to your own trading habits. These two moving averages plus the Bollinger mid-track form a three-average combination. The trading idea of the entire system is to go long and short in the golden cross of the three moving averages. The main function of Bollinger Bands used here is to use the upper and lower rails and Bollinger Bands to close and open.
We can refer to the following points to familiarize ourselves with the analysis method of the moving average Bollinger Bands trading system:
- If you do short-term trading within the day, it is recommended to choose a 15-minute to one-hour chart. The trading time period is when the European and American markets are relatively active. The trading idea is to follow the direction of the cross of the three moving averages as the first wave start signal (as shown below) (Shown), when the first wave signal appears, choose the opportunity to enter the market. At this time, the Bollinger Band opens. When the first wave ends, the Bollinger Band closes, and the position should be closed at this time. After closing the position, you need to wait for the new first wave of signals to enter the market. In other words, this trading model only chooses to be the first wave of signals. In actual operation, you need to pay attention to some details. Before the first wave begins, there needs to be a process of sideways. The most obvious feature of the sideways is that the upper and lower rails of the Bollinger Bands and the three moving averages tend to be flat. After the opening of the European and American markets , Be sure to pay attention to price changes, usually pull to a low level to test the lower Bollinger rail and then form a real first wave of rise after breaking the upper rail, or pull to a high first to test the Bollinger upper rail and then rush down The track formed a real first wave of decline. Regardless of whether the first wave is up or down, and no matter how many waves can follow, we always wait for the signal formed by this first wave to enter the market. When trading, set the stop loss near the low or high before the signal is formed as an intraday Short-term, stop loss should not be too large, such as the euro against the US dollar (EURUSD) should be within 20 basis points, gold (GOLD) should be within three dollars, if the stop loss is too large, abandon the transaction, the stop profit setting is reasonable Profit-loss ratio, when there is a profit, you can move the stop loss appropriately to protect the profit.
- If you are doing scalping up and down trading on the oscillating market, it is recommended to choose a 5 to 30 minute chart. The trading time period should be placed on the Asian market or midnight as far as possible. There is a clear first wave (up or down) before the end and sideways characteristics At that time, sell high and buy low on the upper and lower tracks of the Bollinger Bands.
- Before trading every day, it is best to have a comparative selection of the trading products of the day. For example, a certain product has been trading sideways recently in a larger period such as daily and week, then this product should not be operated as an intraday short-term transaction. When you operate this product, you usually turn over before closing the position after the first wave. Here you can refer to the following techniques: if the big cycle is going up or down in the first wave, then the small cycle will follow to catch this first wave up or down, and the success rate will increase; if the big cycle fluctuates, then wait for the price to increase It is safer to catch this first wave of ups and downs in response to the price turning back in a small cycle when the upper and lower ranges of the cyclical shock return.
The moving average Bollinger Bands trading system is a separate mt4 indicator. When installing, click on the menu bar above the mt4 chart in turn: File-Open Data Folder-MQL4-Indicators, and then copy and paste the “moving average Bollinger Bands trading system.ex4” file to In the Indicators folder and restart mt4. Just drag the indicator to the chart when using it. Of course, if you need to reset the indicator or add some indicators that you think are good for further optimization, it is all possible. Just after optimization, remember to save a separate template file for the next call.
For this type of trading signal, according to the author’s personal experience, if you always bury your head in a small cycle, and completely ignore the trend of the big cycle, then it is easy to make a profit for a period of time and it is easy to be pitted over a period of time. situation. Therefore, in actual trading, it is also necessary to continue to pay attention to the trend of the big cycle in order to change the small cycle trading plan in a timely manner.