Forex and Bollinger Bands

The speaker illustrates a popular bollinger band strategy in the forex market.  He looks for a breakdown throughout the bottom of the bollinger bands and then waits for a backtest of the bollinger bands and shorts the pair.  He suggests that his exit strategy is to get out of his short positions when a significant support level is hit or the pair closes above the 10 period moving average.

He strongly suggest to avoid shorting the actual breakdown as the market will normally retrace some of its losses before heading lower.  He also provides his custom settings on the bollinger bands.  He sets the bollinger bands to have a length of 14 with 1 standard deviation.