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HELLO TRADERS, Welcome back to the channel! in this video you will learn a trading
strategy that will help you maximize your profits as a Trader the Bollinger Bands with awesome
oscillator and trending line breakout strategy we'll be exploring the different components of
this strategy including the tools and techniques used as well as the psychology behind it
this trading strategy can be adapted to fit different trading Styles and markets so stay
tuned to find out how you can take your trading to the next level with this powerful strategy
if you want to watch more videos like this make sure to subscribe like the video and hit the
notification Bell so you never miss out on any future uploads the Bollinger Bands indicator is a
popular technical analysis tool used by Traders and investors to analyze price volatility and
potential price reversals in any financial markets it was developed by John Bollinger in the 1980s
and has since gained widespread adoption the Bollinger Bands consist of three lines plotted
on a price chart a middle band an upper band and a lower band the middle band is typically a simple
moving average of the price over a specified period often 20 days the upper and lower bands
are calculated as a specified number of standard deviations above and below the middle band
the standard deviation is a statistical measure of volatility by using standard deviations
to determine the width of the Bands Bollinger Bands automatically adjust to market conditions
during periods of high volatility the bands widen and during low volatility the band's contract
the interpretation of Bollinger Bands revolves around the concept that price tends to stay
within the band's boundaries when the price approaches the upper band it is
considered overbought and a potential reversal or Price decrease may occur versely when the
price nears the lower band it is seen as oversold signaling a potential price increase or reversal
some Traders also look for specific patterns within the Bollinger Bands such as a squeeze or a
Breakout a squeeze occurs when the band's contract indicating low volatility often preceding a period
of high volatility a breakout happens when the price breaks through the upper or lower band
suggesting a significant move in that direction while the Bollinger Bands indicator is widely used
it's important to note that it should not be used as the sole basis for making trading decisions
it is typically used in conjunction with other technical indicators or chart patterns to confirm
signals and provide a more comprehensive analysis of the market the main characteristics and usages
of Bollinger Bands are one this indicator is used to measure the volatility of a price though
it can also effectively determine the trend as well as the overbought and the oversold levels
2 the bands automatically expand when volatility increases and narrow when the market calms down
three the price tends to return to the middle of the Bands
thus every time it touches one of the Bands you can expect it to bounce to the opposite side
hence that makes Bollinger Bands a good indicator for swing Traders
four if the bands are very close to each other for a while a breakout may happen in either direction
two of the most critical trading systems provided by Bollinger Bands are Bollinger
bounce and Bollinger squeeze the former is a trend reversal strategy whose main idea is
that the price tends to bounce back to the middle whenever it touches one of the Bands thus when the
price touches the Bollinger Bands upper line Traders would usually go short and vice versa
to put it in context you can think about the bands as Dynamic support and resistance levels
bowling about works better during sideways trends when the volatility is relatively low
some Traders tend to ignore such market conditions but this strategy can be very lucrative
apart from this Dynamic support and resistance for this trading strategy
we are going to use a trend line the main idea is to use more confirmations and confluences
a trend line is simply a line that many Traders use as part of their technical analysis
it is a line drawn along a trend to show diagonal support or resistance
trend lines must always be diagonal line there are only two types of trend lines a falling trend line
and a rising trend line a falling trend line shows that the market is in a downtrend and
a break of it can mean that the market is now in changing to an uptrend this is a Buy Signal
a rising trend line shows that the market is in an uptrend and if price breaks it it can mean that
the market is now in downtrend this is a sell signal here are the rules and steps to draw a
falling trend line in a downtrend a falling trend line shows you that the market is in a downtrend
a falling trend line is drawn above price I see many Traders drawing the falling trend
line below the price that is a big mistake a falling trend line is drawn only above price
to be considered as trendline you must connect at least two points here is how
Step 1 find two swing highs or Peaks these are shown as 0.1 and 2 on this chart
Step 2 connect Point 1 and 0.2 with a line if price heads up to the falling trend line that
line can act as zone or level of resistance for price and you can see price hit that falling trend
line and move back down or the price may break the trend line and continue to another Direction
here are the rules and steps to draw a rising trend line in an uptrend a rising trend line
shows you that the market is in an uptrend a rising trend line is drawn below price to be
considered as trendline you must connect at least two points here is how Step 1 find two swing lows
or bottoms these are shown as 0.1 and 2 on this chart Step 2 connect Point 1 and 0.2 with a line
if price heads down to the rising line that line can act as zone or level of support for
price and you can see price hit it and move back up or the price may break the trend line
and continue to another Direction the awesome oscillator is a technical indicator used to
analyze price momentum and identify potential trading opportunities in financial markets
the awesome oscillator indicator consists of a histogram that fluctuates around a zero line
when the histogram bars are above the zero line it suggests that bullish momentum is dominant in
the market conversely when the bars are below the zero line it indicates bearish momentum
the resulting value of the awesome oscillator can be positive negative or zero it is represented as
a histogram that fluctuates around a zero line the histogram bars reflect the momentum of the market
interpreting the awesome oscillator
to interpret the awesome oscillator is very easy here are the signals this indicator can give you
one bullish signal when the histogram bars are above the zero line it suggests that bullish
momentum is dominating the market the larger the histogram bars the stronger the bullish momentum
two bearish signal when the histogram bars are below the zero line it indicates bearish momentum
in the market the larger the bars the stronger the bearish momentum three zero line crossover
crossovers of the histogram bars across the zero line can indicate potential trend reversals
a move from negative bars to positive bars above the zero line suggests a shift from bearish to
bullish momentum while a move from positive bars to negative bars below the zero line suggests a
shift from bullish to bearish momentum with all these three indicators in conjunction we are going
to build our trading strategy let's now jump to the trading strategy this trading strategy is made
up of three components Bollinger Bands indicator awesome oscillator indicator price action support
resistance and trend line breakout time frame 5 minutes and above it can be used or adapted to any
Market any currency pairs preferably any currency pairs with low spreads but if you use currency
pairs with high spread your stop loss should be larger to account for the spreads by rules step
number one draw a falling trend line on the chart and wait for the price to break out the trend line
step number two a bullish Candlestick must break the middle Bollinger band and close above it
step number three look at the awesome oscillator indicator see if this scenario corresponds to
the awesome oscillator having a bullish bar above zero level that indicates bullish momentum in the
market step number four by after the close of a strong bullish candle that breaks the middle band
place your stop-loss a few Pips below the entry candle or in the previous swing low use one to
two or above risk reward ratio for your profit or use the previous swing high as your profit Target
sell rules step number one draw a rising trend line on the chart and wait for the
price to break out the trend line step number two a bearish Candlestick must break the middle
Bollinger band and close below it step number three look at the awesome oscillator indicator
see if this scenario corresponds to the awesome oscillator having a red bar below zero level
that indicates bearish momentum in the market
step number four sell after the close of the strong bearish candle that breaks the middle band
place your stop loss a few Pips above the entry candle or in the previous swing High use one to
two or above risk reward ratio for your profit or use the previous swing low as your profit Target
we hope you enjoyed this video and found it useful make sure to practice and understand
this strategy before applying it in real trading and most importantly since trading involves risk
and can lead to losses always follow strict risk management rules by doing this you will increase
your chances of becoming a successful Trader thanks for watching and good luck!