Here is the NZDUSD 4 Hour chart. About 30 pips to the line. Not sure if I am gonna trade it . I will on demo.
Line is angled down
Iâve been following this thread and notice that at times when some of you guys have posted pictures of trade setups my software isnât showing the same.
For example on the above picture my software/broker has been showing a flat 50 SMA since last Thursday/Friday and still is showing a flat 50 SMA. But the previous poster shows an upward SMA. Anyone experience the same? Anyone know why this would be the case?
I entered this last Friday when the 50 SMA was flat on a demo without considering price action just going on the fact price was above SMA and seemed exhausted. Oops!
Thanks.
Itâs interesting that you mention that pair, did you see the nice pin bar formation on Friday daily chart at key resistance level? Thinking that may be a good daily PA trade, so the 4H trade may be a good rubber band trade, what would you like to see the candle form to be a good entry?
Yes I did see that daily chart pinbar. The pair has been trading above the 50 line since the beginning of Feb. this is itâs first trip below the line on May 20th. I do think it will retrace back to the line. If you have been trading the bounce off the line , the first touch of the line from below on the daily chart seems to be a good sell.
I am not certain of the 4 hour sell. Its already heading up.
Here is my current audjpy daily chart . If the line stays flat or curves down a bit I would look for a PA signal some place in the box.
Thanks. That makes more sense.
[QUOTE=âarmandrmorel;634149â] What about this strategy, giving entry and exit points to the rubber band strategy? Maybe a slightly different strategy altogether. Makes sense in theory. Rubber Band Trade - YouTube[/QUOTE]
Cool. Another one to review. Thanks
I am selling the USDCAD based on the daily chart . It is a trade away from the 50 line. The USDCAD has been trading above the 50 line since OCT 23rd 2013. It broke below on March 27th 2014. It retraced back to the 50 line on April 23rd and touched , then dropped 217 pips.
And it just came back to the 50 line for the 2nd touch on June 4th . What I am guessing is an near equal distance drop similar to the first touch on April 23rd.
I am breaking the rules with this trade.
I have a 47 pip stop and a 188 pip limit
Here is the current daily chart.
This looks interesting as an extension to the existing system. Does anyone know where you can find the linear regression mt4 indicator as shown in the video?
That video just explains the boillinger bands, with 1 stand dev and 2 standard deviation with a 30 SMA.
Its just the same in theory, instead we are recoganizing S/R with past price action instead of Std Deviation.
Understood, but the video is not showing Bollinger bands. I have looked around MT4 and there are ways of bringing in LR indicators using COG etc. However I canât find an exact replica of the indicator used.
Anyway I have some ideas to test on additional trades that could be placed. I will test and report back in the future if anything comes of it.
Wow! This system is not for the impatient people⌠Hard enough to see a setup and then I find one for the AUDJPY. All day it has hardly moved in either direction. Oh well, looks like the AUD is losing strength on a lot of pairs at the mo. 
[QUOTE=âpchees;634353â] Understood, but the video is not showing Bollinger bands. I have looked around MT4 and there are ways of bringing in LR indicators using COG etc. However I canât find an exact replica of the indicator used. Anyway I have some ideas to test on additional trades that could be placed. I will test and report back in the future if anything comes of it.[/QUOTE]
Just add 1std boillinger band, and 2 std deviation boillinger band with a 30 SMA. Itâs exactly the same.
Usd/jpy looks like it could be a potential rubber band. For about 60-80 pips. What do you guys think?
Iâm struggling to see this one. You got BB of 50 and not a 50MA. On my chart, the 50MA would suggest a sell but by your chart, Iâm not sure what it or you are suggesting in terms of trade?
[QUOTE=âkeydcuk;634381â] Iâm struggling to see this one. You got BB of 50 and not a 50MA. On my chart, the 50MA would suggest a sell but by your chart, Iâm not sure what it or you are suggesting in terms of trade?[/QUOTE]
Boillinger bands use sma for their middle line. Meaning the middle line of this BB for a period of 50 is the 50 SMA.
The other SMA here is 100 periods, which I use to recognize S/R.
And yes, youâre right⌠Itâs a potential sell.
Great webinar by Dr. Barry Burns, the guy whoâs ârubber bandâ theory we follow here.
Iâll have to watch it when Iâve got more time. Thanks for the share!
It seems some of you are making this system harder then it should be. A 50 sma on the daily chart is all you need. Yes it takes time for the set ups to come, but when they do they usually come on multiple pairs at the same time.
You dont need to add anything to the Rubber Band Trade. It works best on the daily chart.
But if you feel you need to change it and mess with it . Good Luck.
Sign up for a myfxbook account and post the link to your account here so we can follow your progress when you change the system.
Lost a few dimes today trying to change the system. :33:
Always fun to play, though. 99% of the time you just find out that an idea is junk but thereâs that 1% of the time where you figure out that youâre really onto something.
I keep a task list just filled with random ideas for trading systems. Some spur of the moment, some inspired with what I see on forums. But I write it down so I donât forget. I have 348 tasks in the trash bin (now including the Bollinger Bands idea). 5 tasks currently outstanding - 2 tasks that were good (and one was the Daily Rubber Band) plus 3 currently outstanding for testing.