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Bbma Setup

WHAT IS BBMA

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86 views

Bbma Setup

WHAT IS BBMA

Uploaded by

mervdsz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BBMA, which stands for Bollinger Bands and Moving Average, is a trading

method that is quite popular and widely used not only in the forex market but also in
the stock and commodity markets. This strategy is different from another version of
BBMA called BBMA Oma Ally, which uses two Moving Averages.

In the BBMA strategy, traders use the Bollinger Bands to spot possible changes
in direction and the Moving Average to decide when it's a good time to get in
on a trade.

How Does BBMA Trading Strategy Work?


For the Bollinger Bands, the standard settings are a period of 20 and a deviation of
2. For the Moving Average, we use a period of 10.

The basic idea is to look for moments when the price breaks out above or below the
Bollinger Bands and then reverses its direction to go back inside the Bollinger
Bands.

When the price briefly breaks through the Bollinger Bands and then turns back, it's a
sign that the trend is likely to change. During this time, you'll often see candlesticks
with either long bodies or long shadows.

This strategy can be used on various time frames, but it's best to apply it on higher
time frames like H1 (1 hour) or above. This is because, on shorter time frames like
M1 and M5, there is a lot of random price movement that can make things confusing.

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