Low Risk Forex Strategy With Bollinger Bands And RSI Indicator

A low risk forex strategy with Bollinger Bands, RSI and the Fisher Yurik indicator. The main purpose of this strategy is to buy dips in up trends and sell rallies in down trends thus keeping our risk as low as possible.

Chart Setup

Indicators: RSI(4), Bollinger Bands(20,2), Fisher_Yur4ik custom indicator
Preferred time frame(s): 15 min, 1 Hour, 4 Hour, Daily, Weekly
Trading sessions: Any
Preferred Currency pairs: Low spread pairs max. 3 pips

Download

Download the Low Risk Forex Strategy With Bollinger Bands And RSI indicator for Metatrader 4.

GBP/USD H4 Trading Example

forex-rsi-bollinger-bands

As shown in the GBP/USD chart above, the system issued two forex signals. One buy signal and one sell signal. Both were closed for profits at the upper-and lower Bollinger Bands. Click the chart above to enlarge.

Trading Rules

Buy Rules:

  • PFisher_Yur4ik oscillator has to be green colored (bullish trend)
  • Price touches the lower Bollinger Band (dip in up trend)
  • The RSI indicator crosses back above the 30 level from below (oversold)

This is your buy signal. Place stop-loss 4 pips below the previous swing low price.
TP: Exit the trade at the upper Bollinger Band. Alternatively, close the trade at the middle BB (less profits).

Sell Rules:

  • PFisher_Yur4ik oscillator has to be red colored (bearish trend)
  • Price touches the upper Bollinger Band (rally in down trend)
  • The RSI indicator crosses back below the 70 level from above (overbought)

This is your sell signal. Place stop-loss 4 pips above the previous swing high price.
TP: Exit the trade at the lower Bollinger Band. Alternatively, close the trade at the middle BB.

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