{"id":14483,"date":"2023-03-10T16:57:27","date_gmt":"2023-03-10T13:57:27","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=14483"},"modified":"2026-05-26T10:55:40","modified_gmt":"2026-05-26T07:55:40","slug":"how-to-trade-the-gbp-jpy-strategy-using-the-bollinger-bands","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2023\/03\/10\/how-to-trade-the-gbp-jpy-strategy-using-the-bollinger-bands\/","title":{"rendered":"How to Trade the GBP\/JPY Strategy Using the Bollinger Bands"},"content":{"rendered":"\n

Today we will look at a short-term trading strategy<\/a> based on the Bollinger Bands<\/a> indicator with different timeframes. It is designed to work with the currency pair<\/a> GBP<\/a>\/JPY<\/a> on the M1 chart.<\/p>\n\n\n\n

GBP\/JPY is a highly volatile instrument, and the technical indicator will indicate instants when the price diverges significantly from its average fluctuation and there is a high probability of a move in the opposite direction.<\/p>\n\n\n\n

<\/span>How to trade GBP\/JPY with the Bollinger Bands strategy<\/span><\/h2>\n\n\n\n
\"Strategy<\/a>
Strategy indicators<\/a><\/em><\/figcaption><\/figure>\n\n\n\n

We will show you how to use Bollinger Bands<\/a> signals<\/a> with three different deviation values. We will look at the position opening and discuss the Stop Loss<\/a> and Take Profit<\/a> rules according to the strategy.<\/p>\n\n\n\n

<\/span><\/a>Bollinger Bands in brief<\/span><\/h2>\n\n\n\n

Bollinger Bands is designed as a trend indicator, and it can show not only the direction of the current trend but also estimate volatility<\/a>. It has three lines: a simple moving average<\/a> with a period of 20 is positioned in the middle, while two other lines are positioned above and below, estimating maximum and minimum values. The extreme lines act as a floating support and resistance<\/a> levels.<\/p>\n\n\n\n

According to the author of Bollinger Bands, prices spend 95% of the time in the area between the bands of the indicator. Therefore, any price move out of this corridor can be seen as a reversal possibility and an imminent return of prices to average values.<\/p>\n\n\n\n

\"The<\/a>
The behaviour of the Bollinger Bands indicator on the CAD<\/a>\/CHF<\/a> chart<\/em><\/figcaption><\/figure>\n\n\n\n

The behaviour of Bollinger Bands during strong market trends is also interesting. As a rule, in an uptrend, an investor wants to buy at the lowest price. In this case, one should expect the price to test the lower boundary of the indicator. In a downtrend, the investor wants to sell at the maximum price. In this case, the price is expected to test the upper boundary of the indicator.<\/p>\n\n\n\n

\"The<\/a>
The behaviour of the Bollinger Bands indicator on the GBP\/USD chart<\/em><\/figcaption><\/figure>\n\n\n\n
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<\/span>How to set up Bollinger Bands<\/span><\/h2>\n\n\n\n

Add the Bollinger Bands indicator to the chart. To set the drawing period and colour of lines, double left-click on the indicator in the chart or right-click once and select \"Properties\" in the menu that appears. Then change the colour of the lines and the deviation value in the opened settings window.<\/p>\n\n\n\n