Below are buy and sell signals on currencies for potential use in your trading strategy. These currencies have traded outside their short-dated Bollinger Bands. A signal occurs
when there is a move outside the band and then a move back through the band. Ideally, the bands will not be widening, meaning that volatility is not increasing.
|Currency||Signal||Outside Level||Band Level||Price Now||Profit Target|
The readings are taken from a daily chart. The “outside level” is the daily high (for Sells) or low (for Buys). The “profit target” is the simple moving average.
The signal occurs when the currency moves back through the band level in the direction of the potential trade. The Bollinger Bands are at 2 standard deviations.
All of the currencies highlighted in the table are available for trading on the CMC Markets platform.
For an example and explanation of this method please see the post at: http://blog.cmcmarkets.com.au/2011/04/14/fx-potential-buys-and-sells-%e2%80%93-method/