Hey thanks mate! That looks brilliant!
I’ll check it out tomorrow! Bollinger Bands would be nice indeed.
I’ll second that. The chat room is great for live interaction, but this thread allows people to learn and participate that have different schedules and miss chat room discussions.
PLEASE i have downloaded, extracted and instaled the MMACD zip file but it is not working properly on my MT4. need some help. please.
you need to read the whole thread mate…we arent using it anymore…
A test of my understanding… I am compelled to post this chart as I think I followed the rules…
Rules I followed:
2 candle CBL
Waited for opposite BB to turn in (indicated with the blue vertical line)
Waited for a close above the CBL line (Indicated by my red zigzags)
Entered at the open of the next candle.
M30 chart
Target at midBB for TP1
SL at low of CBL (light blue line)
CBLs only adjusted for lower lows and lower highs.
Some possible reasons why this trade failed:
hmmm… it’s a counter trend trade?
Did I draw my CBL wrong?
It’s a sausage?
Do I need to make my chart larger?
Let me know your thoughts.
Your chart is fine beehjae.
You traded in the middle of a bubble.
Here’s a post from Tymen explaining this well. Compare your trade to Denise, you traded in the gray area. The no trade zone.
Thanks for the reply Master Tang
Yeah, I remember tymen discouraging newbies not to trade bubbles and sausages.
Now, then, my next academic inquiry is to determine a more detailed approach of how a squeeze looks like?
Or better… anticipate that a squeeze will be occurring. Any detailed definitions we have? Squeezes stand out in hindsight, but if it’s “in the making,” it’s more difficult than I think it is to identify one, imo.
I notice that you’re not in chat. Unless you use another name
Greg, very cool! You could guess I’d like this
Watching price action will often tell you when a squeeze is setting up.
Price will slow down on the chop, and consolidate in ever tightening candles.
I’m watching charts, and I’ll post one when it’s setting up.
And I have the same name in chat.
I’ll pop in for a bit:)
thank you master tang, I’ll be looking forward.
I have created a spreadsheet with the 5 lot trading system. It’s helped me in fast moving times and trading multiple pairs. I just pop the initial entry price and it gives me all my SL,BE prices for each lot. Would love to share it but it appears you can’t upload excel on this forum. Any suggestions?
Master Graviton Esq.,
At the risk of poking the cranky diamondback rattler with a stick ; have you had time to check out the link Tymen provided? I think it would really help people like beehjae understand how you personally define bubbles, squeezes, etc. Maybe clear up a few of his and others questions.
It is my understanding that the so-called no-go areas were only defined as a result of newer traders having trouble on CT trades; and that these will be removed once he returns and the method is refined as a result of all our experiences. Of course, we will have to wait & see.
PS. Still looking for a sufficiently grumpy garden gnome for your avatar
You could probably upload it onto the Bollinger Band DNA Collaboration site that Merchant Prince set up.
I"m going to disagree with Master Tang here. That’s a sausage, as a bubble will not continue in the same direction as it was going after the opposite BB has curved it. Also, a bubble has a PA that goes directly to the opposite BB.
Look at the end of the BB walk that you posted. Look at the band it was walking. See how it curves inward when the PA reverses?? In my observation, it happens about 80-90% of the time with there is a PA reversal in either a sausage or bubble.
I look for that before I enter (in demo of course) on a PA reversal.
There is a fairly typical BB squeeze on your chart. The part before the deep fall in PA there, there is a narrow area before the bands widen, and the PA is quite level. That squeeze is on the 8 or so candles previous to the 8:00 candle on the 4th of May.
Hope this helps…
While your assessment of the situation is more than valid, you have to consider what was occurring at the time of the entry.
When beehjae entered that trade, the scenario would have been that of a bubble, as the rest of the chart we see now was not applicable.
Cheers!
Can you mark a valid CBL for that area? and it’s respective short entry?
for academic purposes
Whenever the mid bb is quite steep, as this is, it has the momentum to keep going in the direction of the trend. That should be a signal to exercise caution about entering a counter trend trade. I recall posting a chart similar to this one as it was happening, but Tymen said he didn’t think it would be good for a ct trade because of the steepness of the mid bb. He was absolutely correct. The pa made a quick return to the trend and did not get even halfway to the mid line. The lesson I learned was to be aware of the steepness of the mid line.
There is no valid short CBL in that timeframe. You’d have to step down a frame or 2 to find the CBL. However it would be in the long candle at 8 am. That would be your short entry…
I see, since I would like to follow Tymen’s recommendations, I won’t go any lower than M30. At least I still didn’t miss anything, given that m30 is my minimum.
I’ll be mindful of the steepness moving forward, however, it seems subjective again as to what is steep and what is not so steep.