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Volatility picked up for both USD/CAD and CAD/CHF during the latter part of the week.

Did it pick up on winning signals then?

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 started off in consolidation, bouncing off the top and bottom Bollinger Bands early on.

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

The pair didn’t catch any valid signals then since RSI didn’t reach the oversold or overbought levels.

Even when USD/CAD took a tumble around the middle of the week and tested the bottom band several times, no valid signals popped up.

Meanwhile, CAD/CHF also started off in consolidation, testing the top and bottom bands but unable to catch any plays.

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

As you can see from the hourly chart above, RSI just wasn’t testing the extreme levels then.

The bands eventually widened, and the pair started trending higher around the middle of the week. However, the oscillator still wasn’t turning down from the overbought region while price was bouncing off the top band.

I guess having a signal-free run was a good thing since any short signals then would’ve ended up in a loss!

This leaves the Short-Term Bollinger Reversion Strategy with no wins or losses for the week.

I’m still waiting on this system to start another winning streak like it did in the previous quarter, but the odds are looking slim!

Seen how the numbers turned out for Q3 2021 yet?