This strategy uses Bollinger Bands just like the name implies. The strategy works best when used with multiple time frames. First we need to apply Bollinger Bands to a daily chart and then do the same thing on a H4 OR hourly chart.
The strategy uses the default 20 setting for the Bollinger. When price is under the middle line of the Bollinger, the market is in a downtrend. When price is above it the middle line of the bollinger, we are trading in an uptrend. We want to utilize the Bollinger bands on the larger chart and then match the trend with a smaller time frame chart.
Price on the Daily chart must be above the middle Bollinger line
Price on the H4 chart must touch the lower Bollinger Band
Price on the Daily chart must be below the middle Bollinger line
Price on the H4 chart must touch the upper Bollinger Band
What is good about this? Any trade taken in the direction of the overall trend has a higher probability of being successful. The strategy makes you trade only in the direction of the main trend and if the trader manages to keep disciplined and follow the simple rules, this one can be a money maker.