Among other things, Bollinger Bands measure volatility, making it a great indicator for scalping.
Scalp traders using Bollinger Bands should also use other indicators to define more accurate market entries.
It is best to use a moving average to determine the trend and the Stochastic indicator for entering the market.
Scalpers who use the Bollinger Bands in trading, can adhere to the following rules:
- Time frame – M5;
- Indicators – Bollinger Bands with the following settings: a period of 20, 2 standard deviations;
- Stochastic Oscillator with the following standard settings (14, 5, 3) as a filter.
The scalping strategy when working with Bollinger Bands is based on finding a stable situation in the market, when the price is not making new highs or lows.