Strategy for binary options, Forex and CFD - Bollinger Band Squeeze Reversal System

Strategy for binary options, Forex and CFD - Bollinger Band Squeeze Reversal System - a strategy used to find entry points into up and down trades using Bollinger Bands with three deviations.

Minimum Time Frame and expiration time

• Time Frame: M30
• Expiration time: 60 minutes (2 candles)

Recommended Time Frame and Expiration Time

• Time Frame: M30
• Expiration time: 60 minutes (2 candles)

Indicators of the Bollinger Band Squeeze Reversal System strategy

• 3 Bands
• bbsqueeze

Risk management

Trade is carried out with a fixed amount not exceeding 5% of the trade balance. You should not trade during the release of important economic news.

Bollinger Band Squeeze Reversal System strategy: signal to increase

• Bollinger Bands are compressing
• The price bounced off the lower or middle band in the lower channel
• Wait until the yellow line crosses the red line upward

Bollinger Band Squeeze Reversal System strategy: downside signal

• Bollinger Bands are compressing
• The price bounced from the upper or middle band in the upper channel
• Wait for the yellow line to cross down the red line

Trading on Forex and CFD

• Before starting trading, it is recommended to test the strategy on a demo account (open at least 3-5 trades)
• The trade is opened after receiving a signal from the trading strategy
• The ratio of Take Profit to Stop Loss should be 3:1 (for one unit of possible loss there should be 3 units of potential profit)
• The time frame of trading is not important - minute charts are suitable for scalping, hourly or daily charts are suitable for long-term trading
• Take Profit to Stop Loss levels are set depending on the selected time frame
• The strategy will show false signals on minute charts during the release of important economic news - trade on higher time frames or choose a different time for trading