The Bollinger Band Squeeze Forex Swing Trading System
The Bollinger band squeeze swing trading strategy is simple and easy to comprehend. It is called the Bollinger band squeeze because the Bollinger band becomes more narrow as price volatility decreases, this happens due to price moving sideways and in a tight range. When this situation occurs, the market may be due for a breakout to the upside or the downside. The Bollinger band indicator will tell you that the market is being squeezed into a tight trading range and there should be a breakout.
Look at the candlestick breakout of the either the upper and lower band as the Bollinger band squeezes.
After the candlestick breaks and closes either above or below the band, place a buy stop order 5 pips above the high of the breakout candlestick if it breaks out of the upper band.
If it is in the lower band, place a sell stop order 5 pips below the low of that candlestick only after it closes.
Place stop loss 5 pips above the high (if you use a sell stop order) or 5 pips below the low of the breakout candlestick if you use a buy stop order.
Take profit at a 1:3 risk and reward ration, at the previous swing high or low, or trailing the stop and lock in the profits as the price continue to move in your favor.
The Bollinger band squeeze indicates to you in advance that a price breakout may be happening sooner.
This is applicable to all timeframes.
How to install The Bollinger Band Squeeze Forex Swing Trading System?
Download The Bollinger Band Squeeze Forex Swing Trading System.zip
Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
Copy tpl file (Template) to your Metatrader Directory / templates /
Start or restart your Metatrader Client
Select Chart and Timeframe where you want to test your forex strategy
Right click on your trading chart and hover on “Template”
Move right to select The Bollinger Band Squeeze Forex Swing Trading System
You will see The Bollinger Band Squeeze Forex Swing Trading System is available on your Chart