Welcome to fenaghfx

This blog is not for specific trades,but to share my experience and what I have learned over the last few years, Trading involves significant risk and may not be suitable for all investors.

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I have been trading since 2008 in the fx market, trading mainly eur/usd my approach is technical,using support/ resistance .But always keeping one eye on the news

Tuesday, June 21, 2011

How I use bollanger bands

In this article I would like to show how I use bollanger bands.

The chart,s above are both in 5 minute time frames, the chart at the top shows a move of 100 pips from the low to the high into a resistance area, a good move up.

The action then starts to consolidate in a nice band, on the second time the top band is breached and rejected, and the band flattens I will look for short entries in the hope of a correction lower, I color my bands red on top and green on bottom and will not sell a green or buy at a red as this would lower my chance of a winning trade, I sold at 4322 on this day on the third attempt just at the top bollanger band with a stop of 7 pips and a move to break even within 60 seconds this gave me a low risk trade ie 7 pip risk with a higher probability of success, as this trade unfolded the price broke higher but I took a few pips profit out .hope this helps Good luck and tight stops Dave.

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