Last Updated on May 8, 2025 by Tim Morris

Trading in Trend Forex Bollinger Band Strategy

This strategy is used to determine trend direction by using the EMA 100 channel. The Bollinger Band in this strategy is used for entry and exits.
This works on a 15 minute or higher timeframe.

Forex Indicators:

• 100 EMA channel:
• 100 Exponential moving average low (EMA);
• 100 Exponential moving average High (EMA);
• Bollinger Band, standard deviation 2.3 and period 10 moving average.

These are the rules:

• Follow the trend in trading.
• Buy when the price is above the channel and sell when it is below the channel.

Buy Entry:

• Market must be trending up.
• The price must touch or break the lower band but above the red line (100 exponential moving average low);
• Buy at the opening of the next bar when price retraces into the band.
• Exit when the price breaks or touches the upper band or with fast profit target ratio 2:1 stop loss (recommended).
• Place initial stop loss at the previous low swing.

Sell Entry:

• Market must be trending down.
• The price must touch or break upper band but below deep sky the line (100 exponential moving average high);
• Sell at the opening of the next bar when the price retraces into the band.
• Exit when the price breaks or touches the lower band or with fast profit target ratio 2:1 stop loss (recommended).
• Place initial stop loss at the previous high swing.

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