Double Bollinger Rubber Band - MT4/MT5 Resources

This is a trading concept based on extreme moves away from Bollinger Bands. Tge takes its name from the fact that prices tend to revert to the mean quickly like a rubber band being stretched

I've only seen it on GJ and GU.

Setup: On the 1 hour GJ chart, add a Bollinger Band (14) with a bias of 1 (red) and again a Bollinger Band with a bias of 2 (navy blue), both set to the closing price.

SELL SIGNAL: Price crosses the highest navy blue line BB. Enter the market once the price is 20 pips away from the BB. Stop loss is set 20 pips above the sell price. Exit when the price hits the red BB above.

Buy signal: Price crosses the lower Navy BB. Once the BB moves 20 pips, enter the market. Stop loss is set 20 pips below the buy price. Exit when price hits the lower red BB.

This approach seems to work well when price is trending and breaks out of its range, and when the BB first breaks out after a contraction (i.e. when the BB narrows and then widens as price moves explosively, indicating a trend).

Avoid when price is trending strongly in either direction (hugging the navy blue line, forming consecutive highs/lows.