My answer to Exercise 4:
First retrace point would be at top of '2'.. this is because STARC bands are going down so the top of retrace is usually at middle of STARC band. (I would sell a 2nd amount at this point).
**** edit**** - as in my answer to Exercise 5, I actually wouldn't have entered at candle '2' as I would have waited for the price to
'walk the band' for 2-3 candles.. I more likely would have entered at close of candle '5'. However, at the time, I would have been looking for a retrace point around the middle STARC band as the bands were moving down.. entering above the middle band would have been an extra bonus.
First exit would be half way down '7' when the price cuts the lower STARC band, or at 10pips+spread (whichever comes first).
Second exit possibly at '8' when price cuts lower bollinger band.
Second retrace is at '10'/'11'... this is because STARC bands are going down again so top of pullback usually at middle STARC band. I would sell 1 amount here.
Third exit would be when bar '12' crosses below lower STARC band and lower BB.
Because the price 'closed' below the lower BB and there's a STRONG piercing pattern at bar '13', I probably would not look for anymore retraces after that point.
