The Best Contrarian Forex Strategy has formed the best Forex trading strategy based on Bollinger bands with unique parameters. It is a combination of two different patterns of Bollinger Bands with different values to cross check the trade signal and address the best exit area of the market entry.
The Best Contrarian Forex Strategy is very much effective during London Session of Forex market hours. You’ll be able to apply it for any currency pair analysis purpose and it also fits with all kind of timeframe charts. Thus, traders from all levels can be benefited from this most effective Forex trading strategy.
The Best Contrarian Forex Strategy Overview
Below is a picture of how the Best Contrarian Forex Strategy looks like:
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The Best Contrarian Forex Strategy Anatomy
- Bands 2.0: This Bollinger Band indicator uses 20 period past price data with Standard Deviation 2.0 to plot its levels. The lower level indicates the short-term oversold area and the upper band signals the overbought area of the respective period.
- Bands Q 3.0: This is the wider band of this system. It uses 24 period of past price data with a standard deviation of 3.0 to find intraday overbought and oversold level as like as Bands 2.0.
- Mid Band: This band level is considered as the engine of this trading system. Price closes above its level indicates that price may go further up and hit the upper bands. On the other hand, price closes below the level signals the price may go further down and hit at least up to the lower bands.
Recommended Similar Strategy: Contrarian Scalping System
The Best Contrarian Forex Strategy: Buy Parameters
- The signaling bar closed as bullish candle or pin bar
- The respective bar closes above lower bands of Bands 2.0 and Bands Q 3.0
- Price bounces upwards from the oversold area defined by both lower bands
- Hold the long entry if price passes above the Mid Band
- Stop loss below the lower bands levels
- Exit long either with 2X profit compared to you stop loss budget or if price plots bearish candle or pin bar at the area of upper band levels
The Best Contrarian Forex Strategy: Sell Parameters
- The signaling bar closed as bearish candle or pin bar
- The respective bar closes below upper bands of Bands 2.0 and Bands Q 3.0
- Price bounces downwards from the overbought area defined by both upper bands
- Hold the short entry if price passes below the Mid Band
- Stop loss above the upper bands levels
- Exit short either with 2X profit compared to you stop loss budget or if price plots bullish candle or pin bar at the area of lower band levels