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.
- The first stub, Greater Than or Equal matches when high is above the Bollinger upper band
- The second stub, Less Than or Equal matches when low is at or below the Bollinger lower band
- Sell fires when the first condition is true
- Buy fires when the second condition is true
To preview the indicator, click the spyglass icon in the top row. The result should look something like the chart below.
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.
This confirms that buy trades are opening when the top band is crossed, and sells are opening when the lower band is crossed.