Double Bollinger Band Entries Using Two- and Three-Deviation Bands

Summary

This forex strategy uses two Bollinger Band envelopes calculated from a 20-period simple moving average: one at two standard deviations and another at three. A long setup begins when the ask price crosses above the upper three-deviation band; a short setup begins when the bid crosses below the lower three-deviation band. After either crossing, the method also checks whether price lies between the upper and lower two-deviation bands.

The document describes entry conditions only. It does not specify exits, stop placement, position sizing, timeframe, or how the price-range check is synchronized with the band crossing. In particular, the stated check that price is within the narrower two-deviation envelope after crossing the wider three-deviation band is ambiguous and may not be simultaneously satisfiable if assessed on the same price observation. No backtest results or evidence of profitability are supplied.

Key ideas

• The method uses 20-period Bollinger Bands at two and three standard deviations.
• A long signal starts when the ask crosses above the upper three-deviation band.
• A short signal starts when the bid crosses below the lower three-deviation band.
• The additional price check against the two-deviation envelope is ambiguous when applied at the same time as the wider-band crossing.
• The document gives no exit rules, risk controls, or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.