D1 trading will often give the traders long-term opportunities to make great profits from the market. However, trading on this timeframe requires great patience as it can take a long time to get a signal to trade.

The strategy in this article is also a trading strategy on the D1 framework. The biggest advantage is that its principle is very simple, most traders are easy to use and the profits are huge.

Note that this strategy should be applied to major currency pairs as chart patterns perform well since liquidity and volume are also better in these currency pairs.

Indicators used in strategy
  • This indicator's main purpose is to identify areas that are overbought to trade.
  • Bollinger Bands (20,2)
  • Stochastic is also used to determine momentum in the market but is not so essential to this strategy. The crossover in the overbought area on Stoch is a good confirmation signal for the strategy.
Trading principles

For buy setup
  • Wait for the overbought/oversold indicator to fall into the oversold zone and turn green.
  • Then wait for the price to stay in the lower band of the Bollinger Bands indicator.
  • When a bullish candlestick pattern appears, we open a long position at or near the lower band.
  • Place a stop loss below a bullish reversal pattern
  • Place take profit or partial exit in the middle band of the Bollinger Bands indicator. The second target is the upper band.
Please refer to the chart below:


For sale setup
  • Wait for the overbought/oversold indicator to fall into the overbought zone and turn red.
  • Then wait for the price to stay in the upper band of the Bollinger Bands indicator.
  • When a bearish candlestick pattern appears, we open a short position at or near the upper band.
  • Place a stop loss below a bearish reversal pattern
  • Place take profit or partial exit in the middle band of the Bollinger Bands indicator. The second target is the lower band.
Please refer to the chart below:


Important note when using strategy

Since this strategy is based on the D1 time frame, a relatively larger amount of capital is required than usual. Because our stop loss will also be bigger.

When the trend is strong, the price can follow the bands without reversing. In such cases, we may experience a stop loss. However, in many cases, the probability that a reversal candlestick pattern will form during a strong trend is very low, so this is basically the advantage of the strategy. Therefore, when there is a real reversal pattern formed according to the conditions we need, but the market does not reverse but forms a few small sideways candles after that. This is a signal that the market is not really ready to reverse.

The Bollinger Bands is an alarm indicator, meaning that the distance to profit targets changes as new candles form. Should be, the profit targets must be updated accordingly. Sometimes transactions will make very small profits or break-even, even without profits. However, we should keep the discipline and principles right, so that long-term profits can be made.