Bollinger Bands as Target

Taken from John J. Murphy's Technical Analysis To The Financial Market, we can use the Bollinger Bands as target. Moreover, I will test it for the 5-13-21 EMA system that I've been using for the moment.

First of all, the target is the upper band on bullish trend and the lower band on bearish. However, some signal appeared when the price is near the target. So, my idea is to add another band set at deviation 3. And I refer to the 4 hour chart target, not in 1 hour. Here is the sample from yesterday signal:

GBP/JPY 1 Hour Chart

GBP/JPY 4 Hour Chart

On 1 hour chart, target is at 207.33 (which is fine actually ;P) and 206.10 on 4 hour chart, a hundred pips more than the 1 hour target. The problem is that we'll have to wait a bit longer to reach the higher target. Sometime, the price don't reach the target. So, trailing stop might be needed. I haven't met any kind of unusual condition regarding this technique. I never use BBands much before;P I will update any necessary input about this later.

Summarizing the 5-13-21 EMA system, we now have the alert, the entry, the initial stop loss, the position sizing, and I hope we can use the Bollinger Bands for exit. Otherwise I just use 50 pips target. Sorry if I post the system piece by piece because basically I was just thinking out loud:) Just check out 'Moving Averages' under 'Label' option. Have a nice trading week..