Strategy for trading in the flat market

The strategy described below offers an easy and reliable method of earning money at the time when the market moves sideways (flat market). Only two standard indicators are required for this strategy: moving average lines and Bollinger bands. The advantage of this strategy is its absolute versatility, as it can be applied to all trading instruments with the use of the time intervals above M30.  The best results with the use of this strategy can be achieved at the chart H1 with the major currency pairs.

The indicators used in this strategy:

1. Bollinger bands (Period 120, Shift 0, Deviation 1)
2. Bollinger bands (Period 120, Shift 0, Deviation 2)
3. Bollinger bands (Period 120, Shift 0, Deviation 3)
4. Exponential moving average (Period 4, Shift 0) – Orange line on the chart.
5. Exponential moving average (Period 8, Shift 0) – Red line on the chart.

Conditions required for a buy transactions (Fig.1):

Fig. 1

1. Bollinger bands are narrowing (the price oscillates in the horizontal range and trend is not clearly determined.)
2. The price chart bounces from one of two bottom lines of the Bollinger bands (we do not consider the bounces of the band that are the closest to the middle line.)
3. Conclude a buy transaction at the moment when the orange line crosses the red line from bottom to top.
4. The best scenario is the situation when the price chart two times bounces from one of the lines (see a figure above).   

Conditions required for a sell transactions (Fig.2):

Fig.2

1. Bollinger bands are narrowing (the price oscillates in the horizontal range and trend is not clearly determined.)
2. The price chart bounces from one of two upper lines of the Bollinger bands (we do not consider the bounces of the bands that are the closest to the middle line.)
3. Conclude a sell transaction at the moment when the orange line crosses the red line from top to bottom.
4. The best scenario is the situation when the price chart two times bounces from one of the lines (see a figure above).   

Conditions required for closing of the transactions

1. Stop Loss is set at the distance of 15 points from the entry point.
2. Take profit is set at the distance of 15-20 points from the entry point.
3. The price crosses the middle line of Bollinger bands indicator.