Only two trades today, and that’s good. CHFJPY and GBPJPY
I’ve scoured all H4 and D1 charts and there are absolutely
no other possibilities.
That’s great, it’s not the sort of deal where you can wish your
way into a set up that isn’t really there
Price must be rebounding off SupDem zone and be far from
If it reverses, it’s ok, there is no stop, you just place a Limit
order near the next SupDem zone.
Isn’t that averaging - the fastest way to the poor house?
No, averaging is when you are sure you are right and the
market must agree with you eventually
So here I am not saying the market must respect Supdem
zones because it may ignore them and reverse hundreds of
pips against you.
but price must always revert to mean and hit Bands at some
It is possible that the point where price hits bands may be
beyond your entry in which case you would lose, as the bands
do move all the time.
so there may be a danger in steeply sloping bands
Ideally price should be high above the bands whilst bands
are sloping down, and looking back there are many examples
but that would not have been apparent at the time. the bands would
only start sloping after price has fallen considerably, in other
words, the bands do not have a predictive mind of their own, it is
basically a lagging indicator, albeit a very useful one.
As mentioned before, because of this situation, a 400 pip drop
to the bands that are rising, might end up 200, or 100 or even
50 pips. what’s wrong with a 50 pip win?
Sometimes you may close where you entered for break even,
but you’ve lost nothing.
Hopefully you wouldn’t normally lose very much
Again, price moving against you isn’t a bad thing unless
the bands also race up as well
but if price moves creating even greater divergence simply
place a limit order for even greater profits.
This strategy requires strong nerves and patience, the two
most essential ingredients of successful trading.
Without these two qualities you cannot succeed in trading,
and this strategy will soon expose your ineptitude.