“3 Time Interval Bollinger Bands Technique” is a modification of A. Elder’s well-known “Three Screens” buying and selling technique. The technique is easy and really efficient. To work, you should open 3 timeframes in separate home windows: H4, H1 and M5, look ahead to the affirmation of the sign to open a place in all home windows in the identical course. This foreign exchange technique is relevant to any buying and selling instrument. To find out when to enter the market, we use transferring averages and Bollinger bands.
Settings and operation precept
Construct order. Set the H4 timeframe. Add a transferring common EMA with a interval worth of 20 to the shut costs.
Interpretation. We open positions within the course of EMA (20), particularly:
Lengthy – when the value is above the EMA (20).
Brief – when the value is beneath the EMA (20).
Second window (essential)
Construct order. Set the H1 timeframe. Add three transferring averages with corresponding intervals EMA (5), EMA (10), EMA (15) for shut costs.
Interpretation. We open positions on the intersection of transferring averages, particularly:
Lengthy – when the EMA (5) passes upward from the EMA (10) and EMA (15).
Brief – when EMA (5) passes from prime to backside EMA (10) and EMA (15).
Construct order. We set the timeframe M5. Add Bollinger Bands (set normal settings, regulate if vital).
Interpretation. As quickly as alerts seem and coincide in course in home windows H1 and H4, open the corresponding place within the window (M5).
• Lengthy – the value goes all the way down to the decrease border of the Bollinger worth channel (the value is beneath the center line and above the decrease Bollinger border), or touches the center line (the value is above the center line and beneath the higher Bollinger border).
• Brief – the value rises to the higher border of the Bollinger worth channel (the value is above the center line and beneath the higher Bollinger border), or to the center line (the value is beneath the center line and above the decrease Bollinger border).
Limitation of losses
• Lengthy – Choose Cease Loss beneath the native worth minimal.
• Brief – Cease Loss is chosen above the native worth most.
• Lengthy – the transferring common EMA (5) goes from prime to backside the transferring common EMA (10) and EMA (15).
• Brief – the EMA (5) transferring common passes the EMA (10) and EMA (15) transferring common from backside to prime.
— to citytelegraph.com