Scalping is a technique widely used by traders to profit quickly. Scalping strategy and has developed many types of diverse. For the first time in this opportunity will be discussed about scalping techniques using Bollinger band indicator only, without other supporting indicators. This technique is quite effective to get the profit when the market is being flat and should take care when markets are trending.
A few days ago, my friend showed him how he could have benefited a lot just using indicators Bollinger bands. This he did by simply taking a bit of profit from each transaction which he did. If I may say, scalping techniques are very simple and quite profitable. So there is no harm if we give it a try.
Scalping techniques using Bollinger band indicator
What’s still there who do not know what and how this simple indicator can help us. Try the note indicator Bollinger bands below.
If seen, Bollinger bands consist of three lines that follow the direction of the candle. The two lines above and below the standard deviation are later we will use as a benchmark for open positions, and midline 1 which is indicative of a trend that is going on.
Terms or scenarios for the open Buy position
- Price or candle touch or penetrate the bottom line Bollinger bands.
Once the scenarios above are met, then the time has come we open Buy position. After that take a little advantage. Do this every time, surely our profit will be enormous. consider suitable example image below:
As for the sell position, the term like this:
- The price broke through the line or touch up and Bollinger bands.
If we look carefully, the price will be bounced in the line of Bollinger band top or bottom line Bollinger bands. In addition, Bollinger bands central line is a moving average line which we can use to know of any change in the trend. just look at the example below:
Simple scalping strategy flaws with Bollinger bands.
Any strategy we use certainly has its disadvantages and advantages as well. Bollinger band strategy weakness is on trending market. If there is a trend on the currency is strong enough, it is better do not continue or use this strategy. Make haste to move on to other bands Bolinger strategy or strategy using indicators.
The conclusion of the technique of simple Bollinger bands.
The techniques or strategies that use Bollinger bands only without using other indicators, it is very easy to apply but has a considerable level of weakness. If we do want to look for strategies that are simple and profitable, it would be nice to use a mix of two technical indicators and little understanding of fundamental analysis.