Bollinger Band Scalping Technique, MA 24 & MA 7 forex analysis

Share:

Bollinger Band Scalping Technique, MA 24 & MA 7


The best scalping method. A very easy scalping technique using several indicators, namely bollinger bands, MA 24, and MA 7. Read to the end so you can understand the whole material for easy scalping that we put in this post.

Indicators used:



MA 24, simple method, apply to close

MA 7, exponential method, apply to close

Bollinger bands default setting

The function of each indicator:

 

MA 24 and 7 are trend indicators as well as signals for entry. If MA 7 is above MA 24, it means that the trend is going up (bullish) and only looking for buying opportunities, on the contrary if MA 7 is below MA 24 it is an indication that the trend is going down (bearish) and only sell entries. While bollinger bands are an addition from the author because the author is familiar and comfortable with the habit of using bollinger bands, so you can use them or not, it's okay. Usually the author uses Bollinger bands as a pointer to the next price range to make it easier to identify the estimated profit target where.

 

This is how your chart will look after entering all the indicators:



The red MA is MA 7 while the black MA is MA 24.

 

Entry Rules

Entry is only on trending markets. Avoid entry when sideaw. Look at the picture above, from the left side you can see a flat price range (sideaway), usually when the sideaway often produces false signals.

 


The entry signal is when the MA 7 and MA 24 cross. For example, when the MA 7 is below the MA 24, it is a sell signal, and the entry is sell when the price retraces upwards and touches MA7 with a stop loss above the previous swing. Conversely, when MA 7 is above MA 24 then it is a buy opportunity and place a buy order when the price retraces down to touch MA 7 with a stop loss below the previous swing. Entry can be single or multiple times (layer / averaging).

Maybe readers who are still newbies don't know what swing is? Swing is the previous high corner price when the trend is bearish and the previous corner low price when the trend is bullish. If you use the example image above, here are the swings: