Bollinger Swing Trade

This swing strategy uses the Bollinger bands to time the entry of buy and sell orders. It works by creating a sell signal whenever the open price rises above the upper band. A buy signal is created whenever the open price falls below the lower band. The chart below shows the result of this strategy applied to EURUSD daily.

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Bollinger swing trade, EURUSD daily

Logic Explained

  1. The first stub, Greater Than or Equal matches when high is above the Bollinger upper band
  2. The second stub, Less Than or Equal matches when low is at or below the Bollinger lower band
  3. Sell fires when the first condition is true
  4. Buy fires when the second condition is true
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Indicator logic

To preview the indicator, click the spyglass icon in the top row. The result should look something like the chart below.

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Preview results

Finally, by opening the chart we can test the indicator and overlay the Bollinger bands. On the chosen chart, select the Indicators dropdown and select Bollinger Swing Trade. Next add the Bollinger Band itself.

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Bollinger swing trade, EURUSD weekly

This confirms that buy trades are opening when the top band is crossed, and sells are opening when the lower band is crossed.

Use this Indicator

Risk Disclosure: Information given on this website is for general purposes only and should not be construed as investment advice. Certain instruments shown here are complex and may come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money. Market data displayed is indicative and is not a solicitation to buy or sell.