Pemaxx Liquidity

The Bollinger Bands, the RSI, and
round number levels strategy

This strategy will help you identify situations when the price has deviated substantially from the norm and benefit from it.

Timeframe: all

Currency pairs: all

Market state:temporary price anomaly

Required indicators:

Bllinger Bands (20, 2.5)
RSI (14, 14, 2)
Round number levels

In order to choose the correct entry point for your trading positions, use the following
recommendations here.

The price should close above the upper Bollinger Band line
The divergence happens if the price goes up and MACD goes down.
Set the entry point when MACD drops below zero.

Stop Loss

Set the Stop Loss order above the previous high and before the entry point.

Take Profit

Take your profit with a risk-reward ratio of 1:1.5.

Trading image 1

Entry steps for a short position (Sell):

Make sure that the price closed above the upper Bollinger Band.
Check that the RSI is above 70.
Look for the first bearish closed candlestick.
Ensure that the candlestick closed near a round number level.

Stop Loss

Place Stop Loss above the previous swing high

Take Profit

Take your profit when Risk-reward ratio reaches 1:1.5.

Trading image 1

Trade Now

Download indicators settings to your desktop platform

If you're looking for a quick method to apply the indicators from this strategy, click on the button below. Read detailed instructions here.

Settings for MT5