BTCUSD Trading Scalping Strategy in 15 minutes for BITSTAMP:BTCUSD by Michael_Harding – TradingView

Bollinger band is a technical indicator that can be used. It identifies trend direction, momentum, volatility, and overbought or oversold price conditions. This indicator provides all this information using three lines.

The central line of the standard Bollinger Bands is based on the 20-period Simple Moving Average (SMA). Then two lines are drawn above and below the center line to form a channel. The upper and lower lines are derived from the middle line by computing the deviation of the price movement relative to the 20 SMA.

Because the outer bands are based on the standard deviation of the price movement, the bands tend to contract during low volatility market conditions and widen during periods of increased volume and volatility. A price violation of the band can indicate strong momentum, while a price rejection of the outer channels can indicate a potential reversal.

The middle line of the Bollinger Band can also be used as a Simple Moving Average. The trend may depend on how the line slips. It can also be used as a strong line of support or resistance where the price may fall.

Upper Bollinger Bands is a modified Bollinger Band that allows more control over how the lines are drawn. Traders can adjust the type of moving average, the price basis used in calculations, and much more.

== MACD Signals ==
The Convergence of the Simple Moving Average (MACD) is based on the difference between the 12 periods and the 26 periods Exponential Moving Average. It is then expressed as an oscillator that becomes positive during highs and negative during lows. The second line, called the signal line, is then derived from the MACD line. The signal line is the Simple Moving Average (SMA) of the MACD line. Then trading signals are generated based on the crossing of the MACD line and the signal line.

MACD signals are a modified version of the standard MACD. It allows more control for traders by allowing traders to adjust the type of moving average line used on each parameter. It can also be set to display trading signals generated by MACD.

MACD signals are displayed as a rotating histogram. Positive bars indicate a bullish trend while negative bars indicate a bearish trend. Trading signals can be generated based on the crossing of the bar above its middle line.

== Business Strategy ==
This trading strategy identifies possible trade setups based on the crossing of the 5-period Simple Moving Average (SMA) line and the middle line of the Bollinger Bands. These signals should be combined with the signals generated by the MACD Signals indicator.

The trade should first be filtered according to the direction of the long-term trend. To do this, we will be using the 200-period Simple Moving Average (SMA). The direction of the trend depends only on the area of ​​the price in relation to the 200 SMA, as well as the slope of the 200 SMA line.

Next, we will wait for the connection of the crossing of the 5th line of the SMA and the middle line of the Bollinger Band and the reversal signal generated by the MACD bars.

Trades are confirmed based on the type of price action and candlestick patterns that occur around key areas on the Bollinger Bands. It can be a sign of price rejection of the outer bands or a strong momentum when the price crosses the central line.

== Indicators ==

200 SMA (Green)
bollinger_bands (default setting with 21 MA)
MACD_Signals
OIL: 6
Minimum: 15
Message: 1
Preferred Time: 15 min

Business Forums: Sessions in Tokyo, London and New York

== Buy Business Setup ==
Entering

The price should be above the 200 SMA line.
The 200 SMA line should go down.
The 5th line of the SMA should cross above the middle line of the Bollinger Band.
Price action should show trends and uptrend indicators.
Enter the purchase order for confirmation of these terms.
Stop Losing

Place a stop loss on the fractal below the entry candle.
Exit

Close the trade as soon as the price closes below the middle line (21MA) of the Bollinger Band.