Bollinger Bands strong Momentum
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Hi guys, currently testing EA with Bollinger Bands reversal, in sideways market or when axis of high and low point stays horizontal and flat or even when market makes smooth price action with Pullbacks working great with additional stochastic and MACD, but found when market keeps "Band walking" and has strong momentum on one side this would gives false signals until Momentum shifts.
What i've found from backtesting that even increasing the smoothing of the Stochastic or MACD is still would entry to early.
Is Somebody working with Channel System like Bollinger Bands as well and has?
I've also tested Bollinger Bands with additonal Bollinger Bands for higher Timeframe like 50, 100, or 200 MA as well, to filter signals when both 20 Bollinger Bands 2. deviation and the one from higher Timeframe crosses.
This still keeps horzontial and flat High Lows still profitable but unfortunately still produces some false signals when market has much momentum and keeps pushing into the bands.
Found also that using something like ADX to indicate momentum wouldnt work out because of the lagging of ADX.
