Bollinger band trading with MAs

[jcgibson]

@John4pips

Thank Jcgibson,
I am using Meta Trader 4. I dont have ibfx.Do you have an idea about how to do this on MT4?.
John

I 'll take a look I think it comes with instruction and get back to you shortly.

[John4pips]

I 'll take a look I think it comes with instruction and get back to you shortly.

Thank you.I will be hanging around.

[jcgibson]

I 'll take a look I think it comes with instruction and get back to you shortly.

Here is the script if you can’t make it work let me know I’ll have to watch the online video but I think you just put it in the scripts folder it states you can set a hot key to use it I would try it on a demo first to be sure of how it works.

Change the extension from .txt to .mq4 and put it in you expert\ scripts folder.

[John4pips]

Here is the script if you can’t make it work let me know I’ll have to watch the online video but I think you just put it in the scripts folder it states you can set a hot key to use it I would try it on a demo first to be sure of how it works.

Change the extension from .txt to .mq4 and put it in you expert\ scripts folder.

Thanks. I will have to use it tomorrow to see how it works when market opens.
John.

[system]

It’s been said on here that E/U is kind of a leading indicator of G/U ? I’ve been watching it and EU does appear to move pretty much the way GU moves but its hard for me to see it making moves ahead of GU.
Is there much of a time delay between when EU moves in a certain direction and GU then follows?

Do an overlay EU and GU and all shall be revealed.

[TalonD]

Do an overlay EU and GU and all shall be revealed.

how do you do an overlay? I can bring up two charts side by side, but do you mean to superimpose them on one chart?

and on the same subject, take a look at this, what do you think?
The Giant Flaw In Correlation Trading (UPDATE) : MarketClub Trader’s Blog

[Shr1k]

I read that article. My question is it is if a gap happens between two correlated currency pairs how do you know which one will move to correct the gap? In the example given couldn’t eur/usd just come down to close the gap? I don’t think this gap alone is enough info to base a trade on. You need some indication of a direction of both pairs to help you decide witch pair will move to close the gap.

[TalonD]

I read that article. My question is it is if a gap happens between two correlated currency pairs how do you know which one will move to correct the gap? In the example given couldn’t eur/usd just come down to close the gap? I don’t think this gap alone is enough info to base a trade on. You need some indication of a direction of both pairs to help you decide witch pair will move to close the gap.

That’s a good point. I think what the article is saying is that GU has more volatility so it should have bigger moves both up and down, so if it hasn’t moved as far as EU then the GU should be the one to make the move. I’m not saying that’s right or wrong but that’s the way I read it.

[d-pip]

ah yes, here, sorry been busy today. It’s been said on here that E/U is kind of a leading indicator of G/U ? I’ve been watching it and EU does appear to move pretty much the way GU moves but its hard for me to see it making moves ahead of GU. Can you show me a picture to illustrate what to look for?
Is there much of a time delay between when EU moves in a certain direction and GU then follows?
I assume you would compare them on the same time frame?

I think looking at the EUR/GBP chart also helps understand the relationship between EU & GU. For "the most part" the EUR/GBP chart is the correlation between the EUR/USD and GBP/USD. Taking it a step further you can throw in the E, G and U/ JPY pairs…  and it starts to get complicated! :confused:

[d-pip]

I read that article. My question is it is if a gap happens between two correlated currency pairs how do you know which one will move to correct the gap? In the example given couldn’t eur/usd just come down to close the gap? I don’t think this gap alone is enough info to base a trade on. You need some indication of a direction of both pairs to help you decide witch pair will move to close the gap.

I think the TA of EUR/GBP , oversold/overbought would give some indication…

Or EURJPY, GBP/JYP and USD/JPY

[TalonD]

I don’t think I want to get that complicated :eek:

So If I look at Eur/Gbp what does that tell me as compared to EU and GU ?

[d-pip]

I don’t think I want to get that complicated :eek:

So If I look at Eur/Gbp what does that tell me as compared to EU and GU ?

There’s a triangular relationship between the three, ie if EUR is getting strong against USD and GPB is weaker against USD then EUR is much stronger against GBP. If EUR/GBP is running flat in a tight range then EU & GU are moving in lock step with each other against USD, if EUR/GBP is in a very strong bull or bear trend then EU & GU are moving in the opposite direction against the USD. Throwing in JPY & to a lesser degree CHF adds to the confusion.

[system]

So If I look at Eur/Gbp what does that tell me as compared to EU and GU ?

Eur/Gbp is the result of EU & GU vibration.

Let’s say there was U.S employment claims aka NFP printimg.

They printed in-line with expectations & a good chunk of market participants were betting the data would come in Dollar negative.

The Dollar negative result would show as Eur/Gbp vibration.

[SanMiguel]

@TalonD

how do you do an overlay? I can bring up two charts side by side, but do you mean to superimpose them on one chart?

and on the same subject, take a look at this, what do you think?
The Giant Flaw In Correlation Trading (UPDATE) : MarketClub Trader’s Blog

attached indicator

OverLayChart.zip (1.98 KB)

[TalonD]

SamMiguel, thanks for that indicator.

Sitting here having some humble pie and realizing there’s still a lot I don’t know, but then I’m only six months old :o

So I grasp the relationship of EU GU and EG how does that help me in my trading of GU ? What do I need to look for ?

[Shr1k]

Sitting here having some humble pie and realizing there’s still a lot I don’t know, but then I’m only six months old

I am in the same boat:D I do think you can get confused if you try to incorporate to many different ideas and strats all at once. So much info can be paralyzing. I think its better to concentrate on a few things at a time. Keep studying and reading but as far as actual trading is concerned keep it simple for now. Thats what I am doing.

[TalonD]

Shr1k, I’m trying to keep it simple, Just concentrating mainly on the 1h due to the fact that I can’t be in front of the charts all the time. But trying to get the overall big picture from other time frames also. And trying to understand how other related pairs fit in.

[SanMiguel]

I am in the same boat:D I do think you can get confused if you try to incorporate to many different ideas and strats all at once. So much info can be paralyzing. I think its better to concentrate on a few things at a time. Keep studying and reading but as far as actual trading is concerned keep it simple for now. Thats what I am doing.

DO we have 2 MacGyvers on the forum now

[SanMiguel]

Sunday gap trade taken from 1.6660 to 1.6626.
Fast becoming my staple Sunday night trade as long as the gap is large enough and the price is outside the bollinger

[d-pip]

Sunday gap trade taken from 1.6660 to 1.6626.
Fast becoming my staple Sunday night trade as long as the gap is large enough and the price is outside the bollinger

SanMiguel,
Hasn’t the gap open retrace been profitable for a few weeks in a row now? I need to start paying attention to it!