Bollinger Bands 1-Minute Forex Scalping Strategy

The Bollinger Bands M1 Forex scalping strategy relies on the volatility of a currency pair in order to confirm its likely buy/sell trend.

Among other things, it combines the Stochastic type and eWaves indicators to further match price swings around the Bollinger Bands.

This is a scalping strategy, designed to not keep traders in the market for too long, instead it swings quickly on profits within the direction of the overall trend.

This strategy is suitable for both professionals and at-home traders.

MT4 Chart Setup

MetaTrader4 Indicators: Bollinger Bands.ex4 (Default Setting), StochasticExpansion_v1.1.ex4 (Inputs Variable Modified; KPeriod1=26), eWAVES.ex4 (Default Setting)

Trade Recommendations

Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute

Trading Sessions: any

Currency Pairs: any pair + Gold

Trade Style: scalping, day trading

Download

Download the Bollinger Bands 1-Minute Forex Scalping Strategy

Buy Trade Example: NZD/CAD (New Zealand Dollar / Canadian Dollar), M1 Chart

Fig. 1.0

Strategy

Buy Trade Setup

Open a buy trade when the following conditions are met:

  • The StochasticExpansion_v1.1 indicator line should be aligned below the -5.00 region (oversold) indicating a likely bullish reversal.
  • Price should be seen trading along the lower outer band of the Bollinger Bands MT4 indicator indicating a probable bullish reversal.
  • The histograms (orange, lime green and dark green) of the eWAVES indicator should be aligned above the zero-horizontal level indicating a bullish trend signal.

Stop Loss

Set the stop loss below the lower outer band of the Bollinger Bands.

Take Profit

  • Close the trade as soon as the eWAVES indicator pops up an orange histogram below the zero-horizontal level.
  • Alternatively, close the trade for a predetermined profit target, for example exit the buy trade for +18 pips TP on the 1-minute time frame.

Sell Trade Example: NZD/CAD (New Zealand Dollar / Canadian Dollar), M1 Chart

Fig. 1.1

Sell Trade Setup

Open a sell trade when the following conditions are met:

  • The StochasticExpansion_v1.1 indicator line should be aligned above the +5.00 region (overbought) indicating a likely bearish reversal.
  • Price should be seen trading along the upper outer band of the Bollinger Bands forex indicator indicating a possible bearish reversal.
  • The histograms (orange, red & maroon) of the eWAVES indicator should be aligned below the zero-horizontal level indicating a bearish trend signal.

Stop Loss

Set the stop loss above the upper outer band of the Bollinger Bands.

Take Profit

  • Close the trade as soon as the eWAVES indicator pops up an orange histogram above the zero-horizontal level.
  • Alternatively, close the trade for a predetermined profit target, for example exit the sell trade for +18 pips TP on the 1-minute time frame.

Free Download

Download the Bollinger Bands 1-Minute Forex Scalping Strategy

About The Forex Technical Indicators Used

The Bollinger Bands is a tool that gauges volatility in the forex market, alongside other vital information like sessions of market consolidation, direction of trend, possible tops and bottoms along with price targets.

The Bollinger Bands are actually plotted two standard deviations away from a simple moving average.

The StochasticExpansion_v1.1 is a modified stochastic indicator and is used to define overbought and oversold regions on the price chart.

The eWAVES indicator deploys colored histogram that are derived from the Bill Williams Awesome Oscillator.

The histogram data calculates the Elliot Waves 3, 4, and 5, and deploys this standard in defining plausible trends.

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