Having seen the main chart, we now smartly toggle to our 5 minute KC chart which was prepared beforehand in readiness >>>
By
tymen1 at 2008-07-24
I have placed the most important stuff on the chart.
As always, the Bollinger bands are in royal blue.
The Keltner bands are in orange.
The MACD we use is the
inverted Di Napoli MACD. It is in green.
The
standard Di Napoli MACD can be seen in
red ,sandwiched (minimized) between the chart and the Inverted MACD.
From now on the
short (standard) MACD will be in
red.
And the
long (inverted) MACD will be in
green.
This corresponds with the code for the candles - up = green, down = red.
The price opened at 97 (103.97) and started to go
down.
Since we are trading
long (up), this is against us, but it will give us a better entry to go
long with.
With the
resultant of the MACD and BB vectors being level, we get that better entry.
A level resultant tells us to enter at the mid Keltner band and that is what we do.
And so we get an entry of 94 (103.94)
That is 3 pips better than the opening!
That pays for the spread and slippage.
The price action continues to go down but we now have our entry.
It is now time to toggle to our 2nd prepared 5 minute chart - the one with starc bands on it.
From here we can determine whether we have a
pips first or
retrace first trade.
So that will be the subject of our next post.