The outside bar forex trading strategy is a price action trading strategy that involves having the range of a price bar exceed that of the preceding bar with a higher high and a lower low. This is a sign that market is experiencing an interim expansion in price volatility or range, which does obviously gives way to a breakout or continuation in trend.
This strategy is easy to adopt by just anyone. Stop Loss for Buy Entry: Stop Loss for Sell Entry: The Bollinger Bands is a technical indicator that was developed by John Bollinger and consist of a center line and two price channels bands above and below the middle line. The middle line is an exponential moving average, while the price channels are the standard deviation of the asset being considered.
The magenta colored Bollinger Bands contracts with price further breaking out along the outer upper band, an indication that price breakout favors a buy. If the outside bar candlestick pattern or any other reversal price action pattern forms please refer to other topics on our page to view more reversal price action , an exit or take profit is advised.
If price trades above the red dotted line of the Fastsignals custom indicator, while the indicator also forms a red downward pointing arrow aligned above price bars, an exit or take profit is imminent. If the Bollinger Bands squeezes or price breaks below the middle line of the bands, it is an invitation to exit or take profit.
Sell Entry Rules Enter a sell if the following chart or indicator pattern are in display: Watch out for the outside bar candlestick pattern at the upper end of both the Bollinger Bands and Fastsignals line and proceed from there.
If red downward pointing arrows of the Fastsignals custom indicator forms above price bars, while price develops around its upper red dotted line, a sell is most apt. If the Bollinger Bands squeezes, it is an indication that price is losing steam, and a breakout is looming, as such an exit or take profit is advised. If the outside bar candlestick pattern or any other reversal price action pattern forms, it is a trigger to exit or take profit. If price trades below the blue dotted line of the Fastsignals indicator or near this level, while a blue upward pointing arrow forms below price bars, this is an indication to exit or take profit.
If the Bollinger Bands contracts, it is a sign of decreasing volumes or uncertainty in the market i. Click Here to Leave a Comment Below 0 comments. Start making pips today: We always respect your privacy at Dolphintrader.More...