This is also known as a Gimmee Bar and I credit Joe Ross for this idea. Not sure where the name comes form but I just refer to it as my Bollinger Reversal System.
I use the standard bollinger settings, no need to play around too much with these, not because there is any right or wrong system, but a good system should work on most settings if you are consistent.
The trade is simple, when at the top of the range of the Bollinger Band you are looking to sell. You wait for a bar that is both a down bar (Open > Close) AND it has touched the upper Bollinger channel. Stop loss would be the high of the trigger bar.
Reverse is true for longs obviously.
Another very simple setup that yields a positive edge. Again, I wouldn't advocate anything 100% mechancial, discretion is always advised. So for example only take a signal in line with the overall trend, i.e a strong upward move followed by a pullback to lower Bollinger channel
With any reversal system I find it profitable to take your money and run as its never advisable to fight the short term money flow for long. A good tip is to take half your position off after a couple of ticks profit and run the other half. You can scalp the first half of your position several times as the trade bounces around your entry point.
I use the standard bollinger settings, no need to play around too much with these, not because there is any right or wrong system, but a good system should work on most settings if you are consistent.
The trade is simple, when at the top of the range of the Bollinger Band you are looking to sell. You wait for a bar that is both a down bar (Open > Close) AND it has touched the upper Bollinger channel. Stop loss would be the high of the trigger bar.
Reverse is true for longs obviously.
Another very simple setup that yields a positive edge. Again, I wouldn't advocate anything 100% mechancial, discretion is always advised. So for example only take a signal in line with the overall trend, i.e a strong upward move followed by a pullback to lower Bollinger channel
With any reversal system I find it profitable to take your money and run as its never advisable to fight the short term money flow for long. A good tip is to take half your position off after a couple of ticks profit and run the other half. You can scalp the first half of your position several times as the trade bounces around your entry point.
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