Forex Bolly Group Trading System Shown by Joseph Plazo.

Forex Bolly Band Trading System Shown by Joseph Plazo.

Trading an apparent trend is far more straightforward than trading when price is range limit, or seeming to move sideways. Many dealers actually pass on the chance of trading at all in a range bound market, standing aside until price takes on a clear tendency. There are however strategies for coping with this a lot more limited range of price movement. This free strategy is offered as one such approach.

The Bolly Band Bounce is founded on the observed behavior of price where the Bollinger bands form a kind of limit for short-term price movement. In this regard Bollinger bands are well named, in that they almost demonstrate the elasticity features of rubber bands.

One way to use this behaviour will be to trade the bounces at the outer bands. This is not very successful in an aggressively trending market, but when the marketplace is in a range it could be very effective indeed for short term scalps.

The very first thing you must do when looking to trade this plan would be to discover that cost is really in a range. Price is making lows that are consistently lower afterward, and if so cost is trending down. And the opposite of course applies for an uptrend: if price is remaining above the mid-group and making highs that are higher then we are in an uptrend.

Now we come to the mechanics of entrance, stop loss and take profit limits. It is critical to understand that this is essentially a scalping forex trading strategy. The notion would be to enter immediately the sign is verified with a harshly tight stop loss, at market, and take gain in the Bollinger band that is opposite.

You need to transfer the stop loss to breakeven as soon as possible, once the move is confirmed by price. If you don't do this price can easily catches you bouncing at the Bollinger mid-band and retracing to take out your stop. This would likely have happened in the first commerce once it was safe to do so, had you not instantaneously went to breakeven.

Naturally, you may need to make use of your own judgement as to when exactly it's safe to proceed to breakeven: do it too early and you will be halted out by normal retracements if cost is moving in the direction you wanted!

As a final note, this unique strategy is best traded in a marketplace that was very quiet, with no essential news statements etc at hand, on a pair that is not given to spiky price action. And it simply goes without saying that you should not enter trades based simply on the fact that cost has reached an outer band. Look for a confluence in the outer band.

According to expert forex trader Joseph Plazo, Confirmatory factors that will support an entry contain:

Support/Resistance Levels


Round Numbers

Fibonacci Levels

Candlestick Patterns


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Comments: 4
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