🏆 This Is The MOST Powerful Bollinger Bands Support and Resistance Strategy For Forex Traders

Hello traders, Vladimir here from Home Trader Club, and in this video I want to share with you what from my point of view is one of the most powerful ways— we can say strategies— to use one of the most powerful and reliable technical indicators, the Bollinger Bands. Before we continue, I would like to take the opportunity and to thank Eightka Broker for supporting our amazing community. And you can continue and enjoy all the amazing offers we have with Eightka Broker, including the access to Home Trader Club, all the trading strategies, all the trading indicators from the marketplace, private sessions, and more if you follow the link Below this video in the description. So before we begin, what is the Bollinger Band? What are the common uses of the Bollinger Band? And what would be the strategy I want to share with you? If you don't know who I am, you can watch this very video on the right top corner and learn more about my story, my journey, my success, my failure, and how I became to be what I am and who I am. In trading world, Bollinger Bands. What is the Bollinger Band? What is this indicator? It was created by one, I would say, one of the most important or major influences on technical analysis back in the 1980s, John Bollinger. This indicator has tons of uses. If you scroll around the net, if you make some searches and researches. You would find numerous ways how to trade with that, different strategies which basically would tell you the same logic over and over and over again with maybe slightly different triggers because everyone is trying to invent something out of what is intended to be powerful as is. So I, unlike many others, come from different position. From my point of view, if This way, the Bollinger Bands as they were created by the creator, by the inventor, if it was good for them, who am I to judge? Who am I to misuse it? Who am I to think I am better and try to find different uses on that? So what I did is I implemented my technical expertise, my trading expertise. I got myself from the Nostro Trading from the private fund trading, and I implemented that into the strategies I trade based on the cycles. And what you will see today is the use of the Bollinger Band based on my trading principles, which are based on the cycles. Okay, um, in a nutshell, what is the Bollinger Band indicator? So what the Bollinger Band indicator does, it takes, for example, the the midline of the Bollinger Band is a simple 20 moving average. On top of that, it applies the standard deviation on the upper and the lower band. This deviation basically measures how the prices spread out of the average, the chosen average, in our case the 20 moving average. Okay, and you can see the formula to the, to this indicator right here. So the common uses are basically to see that common agreement, I would say consensus, on among the technical analysts, among traders, is that the price will always tend to move from band to band, back and forth, back and forth, until they will expand, and then the trend will continue. So Of course, there could be some fake signs. Of course, there could be some misleading layers by the indicator, but this is the common use. As every single indicator, the Bollinger Band is no different. Indicator's job is to indicate the price action, the price structure. Is the one that has to dictate. Remember that, it is very important. Okay, so there are many ways to, once again, to use the Bollinger Bands, and here is some cheat sheet that you can see with the common ways to work with the Bollinger Bands here and here as well. Okay, but what I will be presenting to you is The— what again, from my point of view, is one of the most powerful and reliable, technically speaking, ways to use the Bollinger Band. Not because it comes out of the Bollinger Band solely, but because it combines the very important principle I spoke before, price action. And price reaction to specific levels. Okay, let's begin. It is important to mention what you will see here is a custom-made Bollinger Band. I programmed it in a, in a way that it serves me and alerts me when specific conditions happen. For example, overriding, as you can see here, here, and here, which helps me to spot opportunities to trade in a given direction. Okay, besides that, the, the way that I coded the Bollinger Band, it will help me to spot the opportunities, um, based on duplicated levels. Everything that you will see here you could do manually, but if you are interested in this custom-made indicator No problem. You can go directly to my blog, vladimirribakov.com. Once you are in, what you have to do is to go to My Strategies and Courses and Vladimir In-House Indicators. Once you are in, just scroll down and you would see the Bollinger Bands here. Keep in mind, our versions are available for MT4 and MT5, and this indicator is very loved among My students, my followers, and not because it's some sort of magical creation. No, because it answers on very specific conditions that happen on the market, which bring very high technical reliability for traders. So I will present you the strategy now, and for that I'll take two examples: Euro Yen sell and Aussie Franc buy. But before we do that, I want to give you a few very important tips. Okay, I want to give you like a taste of the price action understanding, and this is what I want you to know. Again, if you already watched other videos of mine, you probably are familiar with that. If you are not, then it's very important you understand a few things. In a given uptrend, highs and lows are going in the same direction, right? Bullish direction, up direction. Higher highs, higher lows. As soon as it flips and changes and we start to make lower lows, the zone of sellers becomes to be sort of an area of a supply. That's where the sellers take control. And if this zone is retested and rejected, there is a high probability the market will provide trading opportunities in the bearish direction. For an up trade or bullish opportunities which come at the end of a downtrend, downtrend is a sequence of lower highs, lower lows, and as soon as it flips and the market makes the higher highs, right, when we drop down to the area where buyers took control here, which is the zone of buyers, the demand area. As soon as the market is next to this zone and rejects, we could be looking for buy opportunities. That's one of the very important trading principles you need to know. And of course, if you want to take your understanding, your knowledge, and learn much more about these trading principles— the price action, the Bollinger Bands indicator, cycles, divergences, and so much more— I would like to invite you to our trading family, the Home Trader Club, where you will be able to get your access to very comprehensive, full, complete trading courses which you will be able to find here inside under the section of education. You have parts for the beginners, you have videos for the advanced which are also spread in the media zone, you have courses there inside. You would be also able to enjoy our trading, real-time trading education and trading opportunities shared with you in our dedicated trading channel where you will be able to find the videos and of course the detailed trading journal that you will be able to find anytime here and in our dedicated Telegram group. Besides that, you would get your access to our weekly videos, educational videos, market analysis, comprehensive detailed explanation on all the trading activity. You would be able to watch all the webinars, educational webinars on tons of subjects including the cycles, the divergences, Uh, candle patterns, price action, and way so much more. So that's another thing you have. You would also have a lot of trading tools you would be able to find inside, and of course access to our community. So join our family with the link below this video in the description. I hope to see you with us. So the next important principle I want you to know is a divergence. I'll go blank screen again. And what you need to know in a divergence, in a bearish divergence, is that at the end of an uptrend, you would be looking for conditions of higher highs on the chart, right? If we say this is H1, this is H2, what you would be looking at on the indicators in the same place is basically lower highs, okay? So, uh, H2 would be lower than H1. So when the price gives you higher highs but the indicator MACD moving average in our case would give you lower highs, this would simply mean a bearish divergence and we would be looking for sell opportunities here. And for a bullish direction, it would be opposite. At the end of a downtrend, we would be looking to compare lower lows on the chart. So this is L1, L2, and at the end of a downtrend Indicator MACD moving average would show you the opposite scenario, right? The second low would be higher than the first low. And the last principle you need to know is a false breakout. When you have a fake high, fake attempt to break above the the first high, which fails, and followed by bearish divergence. We call that a false breakout or FB. Okay, fake breakout, false breakout, which many times indicates that the sellers are going to try to take the control. And in the bullish direction, at the end of a bearish move, you would see an attempt to make a low which fails. It becomes a false breakout to the downside, and when it is followed by bullish divergence, This is an indication, a strong indication that from here there is a great chance the buyers will take the control. So now, as you know these trading principles, and once again, if you want to take it really deeper and learn all these principles in a very professional way and see how they are implemented in real time, join us in Home Trader Club. Thank me tomorrow. And here is the first example what we have relying on the principles I showed you plus the Bollinger Bands. So, uh, as I mentioned before, uh, in my custom Bollinger Band indicator, I designed it in a way that I can measure at any given point where is a dynamic resistance based on Bollinger Band duplication. What do I mean by that? Take a look what happens here with this breakout. When the Bollinger Bands break here to the upside, pulls back, not retesting the middle, and continues to the upside, this becomes a strong breakout. When I plot my Bollinger Band indicator— and again, you can do everything manually, this is just for the comfort of trading— When I plot the Bollinger Band, I see that around this zone we have a Bollinger Band duplication zone, which is a dynamic Bollinger Band-based indication of a resistance. Now, you already know the principles I was presenting before, which are the supply levels. Take a look what happens here. At the end of this uptrend, what happened here? We flipped. We made lower lows after the sequence of the higher highs, higher lows. We flipped. That becomes a sell zone. Then we sellers take control, making lower low, lower highs, and then becomes a seller zone and another seller zone, seller zone, seller zone, seller zone. So now look what happens. The Bollinger Band duplicated. I will take it as a little bit different color, as a purple. And the duplication we saw here, right, with our dynamic indicator, we are next to the supply levels which we already saw. So now we have an amazing combination for the next step. The first step was to find Bollinger Band duplication zone around key supply or demand levels. Now, the next important thing which we learned before is to follow a divergence. Look what happens here: higher highs on the chart, lower highs on the moving average of the MACD. And now it would be this the time for us to get ready for the third step price flip. Okay, because bearish divergence, supply zone, Bollinger Band duplication to the upside. It is screaming sellers could take the control. What do we want to see? We want to see the market making lower lows on the chart and the Bollinger Bands bounces from the upper Bollinger Band and breaks down to the opposite band, the lower band. And in that case, we have lower lows and break of the Bollinger Band. Now, we have the layered sell. Here we could be looking for simple sell opportunity protecting above the recent high, or if you want more aggressive, above the recent supply. So in that case, how do we determine target levels? We can use the same indicator that I showed you before, the custom-made Bollinger Band indicator, and go with dynamic resistances or support levels we have here. This is the first duplication, second duplication, third duplication. We can also use this indicator, which is the Key Trading Level indicator. Again, you can find it in my blog, which I showed you before, or you can follow the link below this video in the description, and you would have— it's called KTLI indicator, and it is based on volume profile and presents you For easy control, full— you see here— comfortability to use different time frames and see it on the chart you are working with. So these are our targets here, here, and here, all the 3 possible destinations. That's where we would be looking to take our profits. Okay, so this is the strategy of the Bollinger Band. Step 1, find a duplication level which represents dynamic support resistance on the Bollinger Bands. Make sure, step 2, it happens around key supply or demand levels. Make sure there is a divergence on the MACD. Follow the false breakout. And then for the final step, follow the break to the downside in the opposite direction while the market is making the lower lows. This is for the sell. Protect above the recent high or recent supply and aim to the Bollinger Band duplications in the direction you trade. Now let's talk about the buys. Okay, so for this example, I would take the Aussie franc. Okay, uh, once again, the first important step which we will want to pay attention to is that we have Bollinger Band duplication level around key zone, supply or demand. So take a look what happens around this zone here, okay? What happens here is you see this, uh, blue line that indicates again by our custom-made Bollinger Band indicator that we have overriding on the lower Bollinger Band Which hints that buyers are likely to take to try and to take the control. Now, if we plot this was our breakout. If we plot the Fibonacci, the Bollinger Bands, sorry, on the breakout, you will see that we have the first support area here, the second area here. So this is now a key zone for us. Besides that, we have bullish divergence— lower lows on the chart, higher lows on the indicator. Again, it is screaming buy opportunity. What I have to do now is to make sure that around this zone there is a key demand zone because we are looking to buy. And I can do that on the same time frame or one higher time frame. For high probability, and if we go to the higher time frame, what I can see here that it all happens around this zone where buyers already proved their interest. Okay, everything happens around this zone. This is absolutely powerful zone, which indicates this is a great area. By the way, if we take a look at the Bollinger Bands breakout. Here on this daily chart, you see where it breaks, right? And we plot our indicator, you would see that even on the daily chart we have a Bollinger Band duplications on here. This screams a buy opportunity. What we have to do next is to look for the buys. We can do that on the same 4-hour chart we saw, or even one lower time frame for better trigger. Does not really matter. In that case specific, because this is where the trade came in in play, the alert happened to be on the one-hour chart. Okay, so take a look. This is exactly the conditions we are looking at. We got the Bollinger Band duplication. We got the bullish divergence. We got the key demand level, and now we are looking for false breakout with bullish divergence. We got lower lows on the chart, higher lows on the indicator. Voilà, bullish divergence, right? Uh, we are looking for false breakout, fake low. You can see I also have this indicator here, which is a false break convergence indicator, one of the best creations of mine. But that's for a different time and different video. You can find the information about it, of course, in the blog or in the link below this video in the description. What happens next? We are looking for this high to be broken And we are looking for the Bollinger Band to be broken, not only the high. But now we also like boom, here we go. Take a look what happens at that place here. Okay, we got the break of the high. We got the higher highs on the chart, and all the conditions we were talking about simply happened. So this is a classical. Sign that this is our buy opportunity, and any pullback it happens gives us a green light to look for the buys. What we will be aiming here in that case is, as we discussed on the euro yen, just opposite because we are talking about the upside here, is to buy. And if we plot, this is the Bollinger Band breakout. If we plot the, um, Bollinger Band to find where the next dynamic resistances are. We can see the levels here, here, and here. This is also key supply zone, which is a very powerful, of course, target, right, for us. And the Bollinger Bands 3rd duplication levels meet us right there. What we will want to protect is below the last low or below the last demand, in our case This is the last demand before the breakout. This is the last low before the trend flips where the buyers control more conservative, more aggressive, and targets you would be looking to aim to the Bollinger Band duplication-based levels, dynamic resistance based on the Bollinger Band at the time the breakout happened. So this strategy might be looking a little bit complicated, but I guarantee it. Absolutely not. And it's super logical once you realize the steps. Rewatch this video if it helps you, um, or if it will make things clearer for you. Feel free to ask any questions in the comment section. I'll be more than happy to assist, or reach us out in our dedicated Home Trader Club chat in Telegram where you can ask all the trading questions you have in real time, of course. Uh, so I really hope you find value in this video. This strategy is not just based on Bollinger Band like in many places you would see some, you know, hammer or some spikes through the Bollinger Band. This is your buy. It's— it could be great, but this is solely based on indicators. And my personal view is that indications indicate, price dictates. And the combination between the both is the king, and that's why I love to use it the way I use. So in that case, in what what what did we learn in this video? You have the Bollinger Band, the usage which is brilliant and absolutely amazing logic behind it. You'll find key dynamic Bollinger Band based support or resistance. You find supply or demand levels. You confirm with divergence, false breakout, and price reversal with the Bollinger Band breaking to the direction you are looking to trade, increasing your probability to make great returns. And because this strategy offers you here great target levels, it will allow you to work with positive numbers. Which means you would be profiting more than you would be risking on average, and that's key, key element and key understanding in for everyone to make successful trading. To learn more about the importance of numbers and how to make numbers work for you, make sure you watch this video on the right top corner. That's it, basically. If you have any questions, don't hesitate to ask in the comment section, and I hope you find value in this video. If you do, please consider to subscribe with the subscribe button below this video. Once again, I want to invite you to our family, the Home Trader Club, where you will get your access to our full trading courses, real-time trading opportunities, and real-time trading education. You can follow the link below this video in the description, or with the special offers we have with Apeka Broker. Of course, again, the link is below this video in the description. So thanks for watching. Best to you and yours. Good trading. I'll see you soon with more. Bye for now.