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The system caught three valid signals this week! One of them is still open. What do you think happened to the other two?

In this revised version of the Short-Term Bollinger Reversion Strategy, I’m waiting for RSI to cross above or below oversold or overbought levels to indicate a bit more momentum in the direction of the trade.

Make sure you review the tweaks here.

USD/CAD went on with its downtrend but at a pace slow enough to tighten the Bollinger Band.

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

Price eventually reached the bottom band where the system validated a long trade. Thanks to a tighter band, the long trade was able to hit its first PT at the 50 EMA before heading lower.

This left USD/CAD with an 18-pip win (+0.36%) win for the week and no open trade to carry over the next few days.

Meanwhile, CAD/CHF traded in a tight range for most of the week.

CAD/CHF 1-hour Forex Chart
CAD/CHF 1-hour Forex Chart

The tighter bands factored later in the week when volatility pushed CAD/CHF at the top of the band where the system validated a short signal.

Later on, price became more volatile to hit even a widened Bollinger Band. A short signal was validated and remains open until the next update.

For now, CAD/CHF has one trade that won an average of 18.5 pips (+0.37%) after hitting both its profit targets. Not bad after a quiet week last week, huh?

Have you seen how the numbers turned out for Q2 2020 yet? Oh, and don’t forget to check out Forex Ninja’s Systems Showcase in case you missed it!