Hi everyone.
Have been following the thread for a while. Thought it was time to post.
I am long the aud/jpy and short the gbpaud for the last few days. I am up 30 and 100 pips respectively.
Also went long on the audusd as well today but still at a small loss.
On my charts they are all rubber band trades. I use other tools such as pivot points, fib retracements, EMAs, support/res, price action etc for confirmation.
Have closed 9 trades so far and 6 have been profitable.
Am a bit confused. Question: Was the 50SMA meant to be below the price line? I thought it did not matter if it was above or below.
hi everyone,
i am a newer retail trader and have also been quietly following the thread.
congrats to anyone who has been in the gbp/aud trade, the past day has been nice to that rubber band trade.
thanks for posting all the tips regarding this strategy.
I just closed my GBPAUD trade for 180 pips and my AUDUSD for 50 pips. Still in the AUDJPY. I have also gone long on the GBPUSD as we bounced off a previous support. Only around 40 pips of potential profit but am willing to give it a go.
Did you watch the Dr. Barry Burns video?
Veztys,
Think of the 50 SMA as our target.
Weāre looking for price to move out from the SMA - then āsnap backā to itās target.
This system is setup to āride the waveā that price makes when it āreverts to meanā.
If price is above the SMA = Weāre looking to short.
If price is below the SMA - Weāre looking to long.
Finally, if our signal candle is say 100 pips. And the SMA is 300 pips away - thatās potentially a good trade. Weāre looking for a good reward/risk ratio on our trades.
Our signal to enter is when the SMA is āflatā and price is at resistance/support, and showing itās hand with a price action signal (pin bar / engulfing bar etc).
Your example wasnāt great - Why?
Consider the USDJPY:
If price goes into the zone marked by the box - fires a bullish pinbar / engulf / inside bar - or which ever signal you want to see. And if the SMA is still flat, weāll buy at āvalueā with the hope that price snaps back to the SMA.
Hope this helps
My AUDJPY is now 110 pips up. I am also long GBPUSD after it bounced off a previous support (up 8 pips so far). I also went short EURNZD and up 66 pips (which I should be closing as it has just gone passed the SMA). I am also long the GBPJPY but sitting at a loss of around 12 pips at the moment.
The NZDUSD looks interesting. It has bounced off a support at around 0.84390. Think I will take a long.
I agree GBP/JPY looks pretty good.
Current positions:
Still long on AUDJPY, at 108 pips profit.
Long GBPJPY, at 38 pips profit
I re-entered EURNZD as it rose and then bounced down off a descending trend line and horizontal support. Up 8 pips at the moment.
I am trading on a demo account just to be clear. Will continue to do so for a few more weeks to ensure that all is well before committing to a small real money account.
My NZDUSD was close at a 47 pip loss.
Thanks ArtOfWar for the detailed explanation. Makes it a lot clearer.
Nope not yet - will do.
I went long on the AUDUSD before and it looks like it is retracing back down to the support at 0.92065. Definitely will be watching for a reaction back up again from this level. The SMA is still pointing upwards.
I am very happy the Rubber Band Trade is working out for all of you. As I said in the opening posts , The credit is not for me . I simply shared what I learned. It is an awesome trading strategy.
Here are a couple of charts to watch. Use price action patterns and candles at support or resistance. Be patient and be careful. Once you are in the Rubber Band Trade , try to trust it. Your entries are critical , as in any trading strategy .
The GBPAUD has been a great Rubber Band pair lately.
And here is the EURNZD . Just 1 pair to watch over the next few days. Sell it at what you think is resistance along with the right entry candle. Use what you know about price action patterns. Where do you think resistance is ?
Hi! Great thread!
Iāve stumbled on this strategy while starting my way in the forex world and totaly forgot about it, now it jumped to my eyes when I saw the name of the thread, gonna give it a try!
BTW I see the AUDJPY also got really nicely back to the MA, great work
cheers,
Yoel
Nope. You need to zoom out or stretch it or something.
It will be a glitch in the feed from your broker showing a massive spread blowout. It happens to me from my broker once in a while.
Iāve had some nice gains on AUD/USD (+43 pips) on demo and AUD/CAD (+19.8 pips) on real mini account recently. My T/P have been more conservative while Iām learning and mastering my own risk mgmt. Sorry I donāt have screen caps; will try that next time.
I donāt know if this is the wrong approach but Iām not using just the 50 SMA. What Iām doing is placing a Bollinger Band at 50/2. So if I understand correctly, thatās a 50 SMA with +2/-2 STD. I use the upper and lower lines as support/resistance.
Also, have tried using this on the M1 chart as well for a couple quick scalpsā¦ 2-6 pip gains in 10-15 minutes.
Ha! I been messing around with the same. ā¦ interested to know how Bollinger bands add/detract from the strategy.
Brutus
I have messed around with the 50 line as well. Diff time frames , scalps , also trading the bounce off the line. I have found that the very best way is the daily chart Rubber Band set up.
The only time frame that comes close to the accuracy and win % as the daily chart Rubber Band Trade is trading the 4 hour Rubber Band Trade.
The best Rubber Band Trades are when the 50 line is angled in the direction of the trade on any time frame.
I have also found that when I find myself trading anything other then the daily chart Rubber Band I start to lose money.
When I begin to lose my patients, waiting for a daily chart RB Set Up . I feel like for some reason I have to always be in a trade. So I start looking to scalp. " Just a few pips" "This looks good "
But it doesnāt work that way , does it? Nope It does not.
When I am patient and wait for the set ups on the daily chart I make money. It never fails, It always works. Sometimes it is a bit slower then I would like. But it works. And my account grows.
I think the hardest part of trading the forex markets is patients. No Patients = No Money OR Patients = Money
My suggestion to you is . . . Try to have patients.
