Typically after a big drop or rise PA will break in the other direction. First phase is strong then fall back. Second break with less momentum. On the 15m TF PA will probably hit the center boll (which will come down to meet it) and reverse. Then as center boll levels off PA will climb.
Yeah, I saw that but always a bit weary after moves like that and the range for GU is over 100% of the average. 173 pips over the last few days, GU today did 225.
I almost got in after the strong bounce for a good price (even had my alarm just above that point!)…oh well, can’t complain with the breakout trade for today. Will keep watching it.
15min chart attached.
Mr. Carter I’ve got your Daily, 15m, and 5m. I’ve scrolled back and didn’t see a breakdown of your 4 hour chart. Could you post a breakdown of it or a screenshot of it including your 1 hour? This will be bring me up to speed on your setup and this thread. Unless you also use a 30m or longer time frame charts?
Hi All,
I notice there are new guys in this thread lately.I have few questons for you,
Have you all gone through school of pipsology?
Do you know how Bolinger bands work in relaton to Support and Resistance?
Do you know how to interprete multiple time frames to trade?
If any of the above anwer is No,PM me i have some books to give you.
Greetings.
John.
N:B,
Please take your time to know the fundametals before you trade with real money.
I notice there are new guys in this thread lately.I have few questons for you,
Have you all gone through school of pipsology?
Do you know how Bolinger bands work in relaton to Support and Resistance?
Do you know how to interprete multiple time frames to trade?
I got that, but I will take a look at you books I tried your PM didn’t work.
Seeing as it’s a few slow days for the US market I though I’d do a bit of hunting around for bollinger band ideas (as if we need any more ! :D)
The aim is twofold:
- when do you consider exiting a trade?
- when do you consider staying in a trade?
When there is a strong trend, we want to stay in to get maximum pips.
Obviously there’s the hedging and the 15min monitoring of the trade.
Found a few articles talking about [B]BUY ZONES[/B] and [B]SELL ZONES[/B] designed to recognise strong trends, which ties in with what we’ve talked about on this thread of strong trends either
- hugging the 20:2 outer boll or
- PA staying in between the 20:1 and 20:3 (this morning’s 1hr PA as an example)
I didn’t want to put the whole article up as some of it conflicts with stop loss strategies and when to place orders but thought I’d pick this one out.
Any thoughts? It might save some pips on the longer 1hr trades but at the cost of getting out a bit early sometimes (can always re-enter at the 1hr middle band). At the very least it’s a signal to recognise weakening momentum.
[B]A Tool for Trend Traders and Faders[/B]
Having established the basic rules for Bollinger band “bands”, we can now demonstrate how this technical tool can be used by both trend traders who seek to exploit momentum and fade traders who like to profit from trend exhaustion. Returning back to the AUD/USD chart just above, [B]we can see how trend traders would position long once price entered the “buy zone”.[/B] They would then be able to stay in trend as the Bollinger band “bands” encapsulate most of the price action of the massive up-move.What would be a logical stop-out point? The answer is different for each individual trader, but one reasonable possibility would be to close the long trade if the candle turned red and more than 75% of its body were below the “buy zone”. Using the 75% rule is obvious since at that point price clearly falls out of trend, but why insist that the candle be red? The reason for the second condition is to prevent the trend trader from being “wiggled out” of a trend by a quick probative move to the downside that snaps back to the “buy zone” at the end of the trading period. Note how in the following chart the trader is able to stay with the move for most of the uptrend, exiting only when price starts to consolidate at the top of the new range.
Check your e-mail.
john
Check your e-mail.
John
SM,
Good job.This is what we need to give new guys.Let them lock in the fundamentals first and these stuffs will become easier.
Thanks
John.
You guys will be the death of me. 
It took me so long to finally get my charts set up with the Tunnel of 5, with all the bolls on each chart in different colors, and now you are changing again! Gahhh!
Just kidding, I admit I’ve never really got the hang of Tunnel of 5, anyway. I think I get better entries from using LWMAs and took the advice previously offered to keep two 5m charts presently, one set up for all bolls (including the 5:1) and another that is just the 3, 6, 9, 14 LWMAs.
By the way, I was working on a PDF synopsis of the strategies in this thread based on posts by the senior members explaining it. I’m sure it is not comprehensive given the length of the thread, but I’d hoped to create a simple at-a-glance understanding of the method so it’s easier for people to learn (like myself).
The current draft is attached in Microsoft Word format for your evaluation.
That’s the good thing about those, you get a tunnel and an MA all in 1 to guide you 
Good start, we can put it on page 1 when done. 
Just a suggestion but you could split it into the different strategies as well, eg: boll bounces, trading with the trend, long term, short term, hedging, trading the 1hr on the 15min, exit points, stop placement, etc. etc.
Nice work Merchantprince! a condensed view is needed for any one new to this thread. It may be worth note I have been using the concepts here on JPY pairs with good results so this is not limited to GBP/USD. It is really just a way to view PA.
Thanks Merchantprince for your work on that. It will be nice to have a condensed version of this thread.
Hi John,
Thanks for the offer of help. I've personally been through the School here and read 90% of “Currency Trading for Dummies”. I am now starting on a Steve Nison book and have read many web pages, web guides, blogs and many of the more interesting threads on here. I've made it my quest to educate myself as much as I can.
What i've been wholeheartedly impressed with - especially on here - is how the Forex "community" are willing to help the newbies through the difficult learning process. I hope to be able to be in a position in a year or so to be the educator rather than the educated.
I think what many people underestimate with Forex is the various attributes you need to succeed. It isn't all about learning systems and understanding how to read the market. There's the psychology, organisational skills and the ability to stick to a plan and not break your own rules. I think this blend of many requirements is the reason for the high failure rate. If you’re getting one of these areas badly wrong, you're most likely screwed.
I appear to be babbling, don't know why! Just passing on my observations a month or so in I guess.
I think the only thing i'm not 100% on yet is quite how to read the different time frames. I'm mainly using the 1 hour and 30m TF’s for the LWMA's to cross and the BB's to look acceptable. I am then using the 5m for tailoring the entry point. If anyone wants to spend a bit of time clarifying this, i'd be grateful. Sorry about the waffle!Attached charts as requested. Expand to 500% for detailed view. I also use a 2:1 boll on the 1h (not shown on the chart).
Carter - if you have a way to contact Cas, would you be willing to email it to me? Thanks!
You should use the different timeframes for SR points and to gauge the general sentiment for the trend, the day, etc.
There are many ways to trade it but the main ones that a few people use are trading the higher TF when it is overbought or oversold (ie outside 20:2 bollinger) but using the lower TF to enter.
eg, you see the 1hr TF is outside the 20:2, you wait for a wicked candle (has to be a decent sized wick) and you enter timing it on the 15min chart…or 30 if you prefer.
However, in doing this you take note of 1hr SR and Daily SR…and 4hr if you want to go that far.
Sort of make sense? Trade the higher TF, use the lower one to fine tune your entry.
The highest probability setups occur when the PA is outside the 20:2 in multiple timeframes at the same time.
Go to your private messaging panel and just type in cas.
I dont have her email address. If shes still registered on here you could always PM her. At least she would receive your email that way.
Thanks, but as you know, she has left this site and there is no longer any way to reach her thru here. Just was looking for another option as I had some additional questions for her.
Oops, closed down account and everything? She’ll be back one day…forex junkie