This simple strategy is based on receiving signals from only two indicators, which are included in the standard platform MT4 and are well suited for trading on the pair XAUUSD. Chart interval – D1.
- Set Bollinger bands with the period 20 on the chart.
- Set Stochastic with the parameters: K Period -5, D Period -3, Slowing -3.
Conditions for concluding a sell transaction:
- The price reaches the upper band of the Bollinger indicator; the black (bearish) candlestick is outlined on the chart.
- The lines of Stochastic oscillator are in the overbought zone; they are directed downwards.
Conditions for concluding a buy transaction:
- The price reaches the lower band of the Bollinger indicator; the white candlestick (bullish) is outlined on the chart.
- The lines of Stochastic oscillator are in the oversold zone; they are directed upwards.
Take profit should be set at the level of the middle (central) line of the Bollinger bands, at which the position has been located at the opening moment. Stop-loss is placed at the level, which is three times less in relation to the level of the take profit.