Yea i know what you mean pkffw, i have never seen that configuration anywhere before…perhaps it is particular to that charting package…I have however seen a system like this before.
It is similar to a system that was put on here a few months ago, it could have been one of James’s actually.
Although there [I]are[/I] differences, firstly the other system used MACD crosses and PARABOLIC SAR…i forget the settings :S…this one uses the BOLLINGER BANDS at their narrowest point…i suppose it is the same sort of thing, a confirmation after the MACD cross.
The theory behind it seems pretty sound, we know that when MACD crosses is it indicative of a potentail big move or reversal…and we know that when the BOLLINGER BANDS contract to their lowest point, it is indicative of price consolidation…which in turn usually resluts in a breakout one way or the other.
I am interested in this…will demo it for a couple of weeks and let you all know how i get on
May the pips be with you