Ban the Bands
Well not literally, but the longer trades drag on the less
relevant they become
At the beginning of last month five set ups were well
now, 6 or 7 weeks later, the entry level on a long position
is no longer way below bands but a little above them!
but to the unkowing, it still looks like price moved way
below bands and crossed eventually way above them
what isn’t obvious is that you didn’t enter at the top
or bottom, even though you thought you did at the time
So bands are of limited use, but they are of some use
price is drawn to Bands, but it can be seriously impeded
unless there is WOS
On one screenshot below, the WOS long trade is actually
a little above bands. I entered way too early.
but if price moves through bands it will almost certainly
move through the relatively short WOS
along with bands you really need a top down approach
on weekly, drawing trendline on weekly.
then ideally, you need to be above/below Bands confluent
then there should be divergence and missed weekly pivots
as these have a proven track record.
Traditionally, you enter at break of trendline
that is very profitable but it can be improved upon
Beyond trendline break you must identify WOS
this is probably more important than all the foregoing
When all the above is in place, price will invariably move
so profit will be reduced and so will trade time
you need to get in and out quickly, time is not on
so, for example, the five trades I took 6 or 7 weeks ago,
with possibly a few more weeks to run…
if I had focused on WOS would typically only take 1 or 2
days duration. simply put,
Price does not take 7 - 12+ weeks to cross through WOS!
Have you ever eaten a really tough steak with a blunt knife?
that’s what I’ve been doing last seven weeks
by contrast, waiting for the WOS, when everything else
is in place, is like a knife through butter
so for the new year, this will definitely be my focus
I will be looking at potential set ups and asking the all
Will I cut through this like soft butter, or struggle for
weeks trying to cut through shoe leather steak?
Trading Forex can be as easy as taking candy from a baby
or as problematic as trying to defraud the mafia
that is really the way I see it now.
bashing my head against a brick wall
forcing a square peg in a round hole
all these truisms find their counterpart in Forex
I don’t know what will be left of my account in January,
but I do see some big improvement for the new year
and finally, here is a set up where you could enter Long ABOVE the Bands,
instead of several weeks nonsense trying to cross the Bands, like trying to
cross the mafia, stressful at best, fatal at worst,
but waiting for WOS is by contrast like taking candy from a baby