Guide
How does the Top & Bottom Strategy by The Accumulation Zone strategy work ?
The Top & Bottom Strategy by The Accumulation Zone is crafted using two primary indicators to signal entry points for trades. The Top and Bottom by ceyhun provides the core buy and sell signals, while the Volatility Oscillator by verifid assesses market volatility and confirms the direction of the trend.
- For a long position, a new buy signal from the Top & Bottom Indicator is required. Coupled with this signal, a bullish spike on the Volatility Oscillator above the Bollinger Bands indicates a strong move to the upside, validating the buy entry. The stop loss should be set based on the Average True Range (ATR) with a risk-reward ratio of 1.5.
- A short position is confirmed by a new sell signal from the Top & Bottom Indicator, followed by a bearish spike on the Volatility Oscillator that dips below the Bollinger Bands, signifying a potential drop. The short entry also uses an ATR-based stop loss and a risk-reward ratio of 1.5.
Traders may bolster their strategy with optional filters, such as session, date, and EMA filters. These adjustments help in refining the strategy to better match specific trading styles and market conditions.