Main photo One-Two Strategy

One-Two Strategy

  • By ForexSRB
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Recommended timeframes M15

This strategy is a variation of reversion strategies based on the "Bollinger Bands" indicator. The strategy is easy to master and uses a technical indicator pre-installed in any MT4 terminal. Therefore, standard instruments are all that a trader needs. The strategy is applicable to all currency pairs, such as EUR/USD, GBP/USD, AUD/USD, CAD/USD, NZD/USD, and USD/JPY. All popular time-frames may be applied: M15, M30, H1, H4, and D1.

Indicators used:

  1. Bollinger Bands (Period 20, Shift 0, Deviation 2) - the green lines on the chart
  2. Bollinger Bands (Period 20, Shift 0, Deviation 2) - the orange lines on the chart

 Conditions for opening "Buy" trades (Pic.1):

  1. Wait till the price is located between the green and the orange lines. Mark this candle as "0".
  2. Wait till 2 more candles are formed. If the closing prices of the candles "0" and "1" have been higher than those of previous candles ("White" candles), open a Buy trade at the opening of the candle.


Conditions for opening "Sell" trades:

  1. Wait till the price is located between the green and the orange lines.
  2. Wait till 2 more candles are formed. If the closing prices of the candles "0" and "1" have been lower than those of previous candles ("Black" candles), open a Sell trade at the opening of the candle 2.   


Conditions for closing trades

  1. Stop Loss at the distance of 5 points from High or Low of the candle 1.
  2. Targets will vary according to the instrument and time-frame. For example: 60 points for EUR/USDH4, 70 points for GBP/USDH4, 200 points for EUR/USDD1, 250 points for GBP/USDD1.
  3. The price reaches the middle line of Bollinger Bands - the red one on the chart.
  4. The trades may be also switched to the "no loss" mode once the chart has crossed the middle line of the bands.  

ForexSRB
ForexSRB

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