A Journey to Master Forex Trading (FX Trader from Singapore)

Sunday, December 7, 2008

Trading Strategy - Bollinger Bands with ADX

Bollinger Bands with ADX

Bollinger Bands are an indicator that allows users to compare volatility and relative price levels over a period time.
Using ADX with Bollinger Bands over 20 days period of time give strong signals:

bollingeradx

Signal to buy:
When the price below the lower band of Bollinger (20, 2) & DI+ over DI-, ADX line cross 20 level, ADX and DI+ rising and DI- falling.
Signal to buy:
When the price above the upper band of Bollinger (20, 2) & ADX line cross 20 levels and rising where DI+ falling and DI- rising.

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