Price Action, Market Structure & Bollinger Band

This is exactly what I was aiming for from this thread. For people to utilise what I propose and come up with a system that works for themselves! Great work and I am so glad to hear it has been working out well for you. All the very best going live!

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Hi @BCShaf, sorry I missed your comment when looking through notifications last night.

Answering your questions:

  1. If you are to use pivot points, Iā€™d say the weekly and monthly? The daily is important too but remember these are for you to use as a reference only and keep a lookout for when price reaches there to see how it reacts. I never set a take profit but rather read from price action to see if I should be moving up my trailing stop or close the trade manually.

  2. If you are only trading the outer bands, I guess it comes down to the rejection of the outer bands. When candles are formed entirely outside of the band, keep a look out for rejection/reversal signals such as long-tail pin bar and engulfing candles in the opposite direction. If you are trading the middle of the band, then I guess how price respects the middle of the band in the direction of the trend is important. Every trader sees a chart differently, so itā€™s hard to describe in words of exactly what I feel when I feel confident to enter a trade because what I feel is confident and right, could be different for you. I think the best thing to do here is to develop a set of rules for yourself and stick to it best you can.

  3. While I donā€™t use any others, I have had people who incorporate RSI, MACD, STOCHASTICS and even another BOLLINGER BAND of different standard deviation (double/triple bollinger band strategy). Those would be the most common indicators used however, I donā€™t use them as I find them distracting. I also have seen people use ATR to dictate SL/determine the volatility of the market.

  4. Definitely is a great read! And will be especially helpful for you if you are looking to trade the middle of the band :wink:

All the best.

Interesting, thanks for sharing.

Youā€™re really performing a service here. Thanks for taking the time to respond!

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Thank you. Will backtest and provide feedback

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Fantastic thread mate, thanks for all you have done here. Clearly spent a lot of time with all your posts. Any chance you could send me the currency pairs?
Thanks again

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Thank you for the comment.

Certainly can, I have DM it to you :smiley:

That was quick! Really appreciate it thanks mate

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Thanks Cloudninee for sharing this well elaborate and a very effective trading method. I will start by backtesting in, kindly sent me the promised 23 pairs you trade via my email.

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Hi @IlungaFM, Iā€™ve been trying to back test this too, but I find the entry criteria to be a bit subjective. What parameters are you going to use?

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Hi Cloudninee,

Thank you for sharing your strategy, there is real clarity in your explanations. Could you please DM me the list of markets you trade?

Many thanks
Jon

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Have DMā€™ed you the pairs.

Hi John, I have DMā€™ed the pairs to you.

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My first dive into these forums and stumbled upon this thread. This is even my first post!

Iā€™ve been educating myself on all things investing/trading over the last 4-5 months.

I just wanted to say thank you for your insights and amazing attitude. This thread has been an incredible learning tool. I hope to post some successful results in the near future (after a bit of backtesting.) :slight_smile:

Is it possible to DM me the pairs, please?

Many thanks,
Matt

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Hi Cloudinee,

Thank you so very much for sharing your strategy. You are very kind. I also hate staring at the computer all day. So I am really grateful. You mentioned a strategy using 3 moving averages but I have not seen details yet. Any idea when that might appear?
Also can you please send me the list of 23 pairs which you use? Many thanks.

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Hey Cloud I hope youā€™re well. I just wanted to get your input on something. I posted an image of a trade I recently took.

EUR/USD sell trade, doji appeared and then another doji with a strong rejection of the 21 EMA. I decided to close this off as i felt with such a strong rejection, it could go against me.

What would you do yourself? Would you ever close a trade if you saw a signal like this or would you just let all your trades run until they hit your stop or move in your favour? Maybe you wouldnā€™t have taken this trade at all but just for argumentā€™s sake, if you do enter a trade and see a big doji like this, what action would you take? A wee bit of input would be appreciated thanks.

image

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Hi @comandantechanch, personally, if I was in your position and took a sell where you did, Iā€™d close out the trade as well or at the VERY LEAST have my stop at BE (depending on where your entry is of course). The 2 bullish pin bars that have appeared are very strong bullish signals especially that itā€™s respecting the middle of the band.

I personally have not seen any bearish sell signals on EURUSD lately though. The trend is bullish and the band is showing that (upward slope and no strong rejection of the upper band).

In the past 2 months, I took 3 short trades on EURUSD (refer to chart below) on 25th February, 3rd March then 18 March respectively. All these 3 trades got closed out on 1st April for a nice profit as I thought price is rather quite over-extended so I started trailing my stop more aggressively in case of a harsh pull back.

Since then as I thought, price after the 1st April pulls back strongly to the middle of the band and has been going up since then.

I currently have 4 LONG trades opened on EURUSD - which is a bit more than Iā€™d like in terms of risks but the signals for bullish is so strong that I cannot ignore. See my trades below on the chart as well marked with the yellow arrows).

A shame I could not catch the start of the reversals to the upside since there were no strong rejection signals off the bottom band but that happens and you canā€™t predict the market.

Let me know if you have any questions and Iā€™d be happy to answer them.

All the best and good trading.

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I have DM them to you today :smiley:

I have sent them to you via DM today :smiley:

Cheers mate I appreciate the insight. Funnily enough, I did catch the start of the reversal to the upside :smiley: I know the point it reversed wasnā€™t a very strong signal on its own but stochastic was showing as oversold with a very slight bit of divergence and that was enough for me to take it and get in the trade. Got a nice wee 4% out of that. Thanks again for your response though. Itā€™s appreciated as always. Take care.

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