Here's how the Bollinger Bands work:
  • When the Bollinger Band is going up, only find opportunities to buy;
  • When the Bollinger Band is facing downwards, only look for an opportunity to enter a sell order;
  • Relying on the middle Bollinger Band, not the outer 2.
If you are using the MetaTrader 4 platform, set up a Bollinger Band indicator when trading with this strategy as follows:


Trading strategy with middle Bollinger Band - Buying condition

Below are the conditions for you to enter a buy order in an uptrend:
  • In the upward trend, the Bollinger Bands will also be directed upwards;
  • You will wait until the price falls and hits the middle Bollinger Band;
  • Place a buy order now or wait until the candlestick touches the middle Bollinger Band line and then place a buy order.
Trading strategy with middle Bollinger Band - Selling condition

Brothers based on the following conditions to place a sell order:
  • Bollinger Band must face down;
  • Wait for the price to rebound and touch the middle Bollinger Band;
  • Sell at the touch of the Bollinger Band or sell at the close.

Trading strategy with middle Bollinger Band - How to place a stop loss

Here's how to place a stop loss when you place a buy pending order:
  • If you place a pending order to buy when the price hits the middle Bollinger Band, the best stop loss should be at the lower Bollinger Band; and at the close of the candle if the distance is too far move the stop loss at least 5-15 pips below the bottom of the next opening candle;
  • Or if you place a buy order right after the price hits the mid-BB, place a stop loss of at least 5-10 pips below the bottom of the opening candle.
Similarly, how to place stop loss when placing pending orders:
  • Place the stop loss at the same level as the upper BB;
  • Or place a stop loss of 5-15 pips on the top of the opening candle.
Trading strategy with the middle Bollinger Band - How to take profits

Here are a few ways for you to take profit when trading with the BB in the middle:
  • If it's a buy trade, take profit as soon as the candle hits the upper BB;
  • If it's a short trade, take profit as soon as the candle hits the lower BB;
  • Or you can trail a profitable short by moving the stop loss after the top of each candlestick until the order exits;
  • Similarly, you can trail stop trade by moving the stop loss behind the bottom of each candlestick until the order exits.
Trading strategy with middle Bollinger Band - Summary

This is an extremely simple strategy, suitable for new Trader brothers to the market. Summarize some advantages and notes when you trade with Bollinger Band below:
  • If you are a Scalp Trader and prefer to trade on shorter timeframes, you can use this strategy to trade on 1 minute to 5-minute frames;
  • This is also a good Swing trading strategy on 4H timeframes to daily chart;
  • You avoid trading when the ribbon narrows because there can be many false signals;
  • You can use a reversal candlestick pattern to confirm your entry signal;
  • Like any other strategy, Trader can lose, can win when trading with the middle Bollinger Band.