Strategy that uses Bollinger Bands breakouts with volume confirmation.
Enters positions when price breaks above/below Bollinger Bands with increased volume.
Bollinger bands show volatility expansion and volume confirms the breakout. Positions are taken when price closes outside a band with strong activity.
Suited for breakout players expecting continuation. A stop based on ATR keeps losses manageable.
Entry Criteria:
Long: Close > UpperBand && Volume > AvgVolume * VolumeMultiplier
Short: Close < LowerBand && Volume > AvgVolume * VolumeMultiplier
[]Long/Short: Both
[]Exit Criteria:
Price returns to middle band
[]Stops: ATR-based using StopLossAtr
[]Default Values:
BollingerPeriod = 20
BollingerDeviation = 2.0m
VolumePeriod = 20
VolumeMultiplier = 1.5m
StopLossAtr = 2.0m
AtrPeriod = 14
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: Bollinger Bands, Volume
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium