Here is the first of a series of 5 minute charts showing how to get the great entry
Notes below the chart >>>
By
tymen1 at 2008-03-17
This 5 min chart shows the standard Bolinger bands in blue and the Keltner channel fully in grey (done in Microsoft Paint for clarity).
Note that the middle KC band is
not shown and the MACD
not shown. Reason - these are earlier charts from last year and the later ones are much improved.
But I can tell you that the MACD was going
UP.
You can see from the chart that the middle BB band is going UP.
Therefore, the
resultant (the price) is also going UP.
The best entry we can expect is, therefore, at the UPPER Keltner band.
(Now if the resultant was say,
level, the best entry we could expect would be at the
middle Keltner band. And, if the resultant was say,
down, then the best entry we could expect would be at the
lower Keltner band.)
I have located the upper Keltner channel area with a big yellow dot.
But how do we get this price when the 4th candle started where the orange line marked
begin appears ???
To get this price we use a technique that is well practised with experienced traders but newbies really have to learn this technique.
It is very simple and given in the next chart in the next post.