Bolli Toucher Reversal Trend is a Bollinger Band based swing-trading system, used to examine and signal the overbought/oversold conditions of the market. Besides, it also includes RSI double filters and Stochastics signals for better accuracy of the trade signals.
Bolli Toucher Reversal Trend adjusts with all types of timeframe charts thus, supports all kinds of trading styles. Moreover, it allows you to trade any forex currency pair you like within your MT4 terminal.
Bolli Toucher Reversal Trend Overview
Once you are done with the installation of the system on your MT4 platform, your chart will appear like the following image:
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Bolli Toucher Reversal Trend Explanation
- BolliToucher: It is a modified version of Bollinger Bands. Its lower bands represent the oversold area of the market. Its upper bands are treated as the overbought areas of the market.
- RSI Filter: It applies a double filtering system using 2 different parameters of the Relative Strength Index. Both layers of RSI Filter turn white when the market is in a strong oversold condition and turns into pink color to signal the overbought status of the market momentum.
- Stochastics: Its value rises above 80 signals the overbought conditions and drops below 20 means the oversold status of the market. It moves above 50 when the market is in a bullish momentum and drops below 50 to validate the bearish momentum of the market.
Bolli Toucher: Buy Parameters
- Price hits the lower bands of BolliToucher
- Both layers of RSI Filter turns white at the same time
- Stochastics value remains near 20
- Set stop loss below the lower band of BolliToucher
- Exit long/take profit whenever RSI Filter turns pink and Stochastics value reaches above 80
Bolli Toucher: Sell Parameters
- Price hits the upper bands of BolliToucher
- Both layers of RSI Filter turns pink at the same time
- Stochastics value remains near 80
- Set stop loss above the higher band of BolliToucher
- Exit short/take profit whenever RSI Filter turns white and Stochastics value reaches below 20
