Bollinger Bands+SMA+MACD strategy

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Bollinger Bands+SMA+MACD strategy

Postby ognen » Thu Aug 12, 2010 11:44 am

This strategy is under early test as I noticed good opportunity that it might be implemented for professional trading. I need assistance by anyone who thinks that might help for it's improvement (preferably by experienced traders).

Indicators used:
SMA (40) - yellow line
Bollinger Bands (21,2) - blue lines
MACD (12,26,9)

Currency Pair: needs confirmation (possibly any)
Time Frame: needs confirmation (possibly any, but my opinion is the longer the better)

Strategy:
Entry signal - when the SMA(21) in the Bollinger Bands is crossed by the SMA(40) yellow line. The deviation of the BB is determining the trend direction. MACD is used to confirm the trend direction when the signal line is very near to the histogram or already crossed the 0 level 4 periods further.
Exit signal - once the price is closed outside a deviation band, we have to wait until the next price movement which has to be in the opposite direction and cross the band again inwards more than a half of the body that is outside the band.

Problems:
Actually high swings can't be determined. Maybe someone can implement indicator that is going to help detecting them, usage of Fibonacci or Elliot Wave Theory.
Attachments
bb+sma+macd.tpl
download the template and use it in MT4
(1.12 KiB) Downloaded 323 times
ognen
 
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Joined: Thu Aug 12, 2010 10:49 am

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