Here are 2 weekly charts , the CADCHF and the EURAUD
EURAUD weekly , 350+ pips to the line. May drop 100 pips to support before going back up .
CADCHF Weekly, Have you traded the bounce off the 50 line?? This weekly chart shows a strong bounce off the line last week. It has been in a down trend. It can drop 316 pips to .8000. It closed lower then the previous week.
A few RBT opportunities :
GBPNZD - the king of rubberband (;
Flat MA after being bent upwards, I would wait for a reversal pattern on this level
NZDCAD
I’m getting inside this one now - kind of doji made a falsebreak of the last high and the last daily candle- good enough for me.
The only thing is that the slope is just a bit upwards but it has been going nicely down until now
USDCHF
A hammer that also stopped on a Fib level - also an option - no room to trade but I would put 1:1
In my broker it looks like this:
Maybe try to upload a more zoomed out picture so everything will be more clear
Cheers,
Yoel
After some research I have concluded that this method is really just a crude way to trade statistical arbitrage. Hence why it works best on cross currency pairs rather than the majors.
For example, an RB trade that might present on EUR/GBP is really just a spread in the underlying correlation between EUR/USD and GBP/USD. However, the downside is that with the RB method you have a net neutral position in the USD, whereas a StatArb trader would still have a small position in USD and larger ones in EUR and GBP.
Hey Jadd, sounds interesting but I don’t understand so much, can you elaborate?
All three got to the TP (:
about the GBPNZD wich I didn’t get into, If I would’ve scrolled down to 4H timeframe I could catch that huge move with very obvious price action.
Both of the others got there by the end of the week
Didn’t spot any new setups for this week… Have a good week all .
I believe the GBP pairs are setting up: On GBP/JPY it appears to be stalking 171.00-169.85. This might spell a rubber band trade though that might be a long way back to the 50 DMA. Maybe shorter scalps might make more sense.
Anyone’s thoughts on this one?
USD/CAD could be setting up. We may see a retest of the previous breakout level, and if it shows signs of holding I will be looking to short.
Well, it’s been 3 months since I started trading live. My tiny account has seen better days. I’m glad I learned my lessons before I added any significant amounts of money in my account.
I had a nice upward equity curve going and then I had to go be an idiot. Trying to change this system and then going off and trading other ones. See if you can tell where I stopped trading the Rubber Band Method, lol.
Everything else is so frustrating. Sitting around for hours waiting for a scalp; hunting for statistical arbitrage opportunities that I am not sure I fully understand; checking the intraday charts several times for a set-up. Yet this little system is oddly relaxing. It doesn’t ask for much - only 15-30 minutes of your time once a day to flip through the charts.
I was so focused on trying to add things to this system that I ended up breaking it. More is not always better. I broke it and then got irritated and moved on to trying other methods. Instead of just going back to the simple method that worked so well for me in the beginning. Looking at all the charts for the time period I’ve been off screwing around, I see a bunch of great Rubber Band Trades that I missed.
As Ray said in the first post of this thread, “the Rubber Band Trade is simple.”
I took last week off from trading and did a little reflection. I’m pushing the reset button and getting back on track with my trading. No more screwing with the system and trying to modify it, and from now on this is the only system I will be trading (because it is the only stress-free one I’ve found that continues to show positive results). It’s easy and it works just the way it is. All I need is the Daily chart with a 50 SMA and my price action knowledge.
Sorry for the novel. I’m going to make a nice little Rubber Band Method trading plan PDF sometime this week. Just as something to refer to before each trade to make sure I am not straying from the rules. I’ll share that with you guys once I’ve got it all made up.
Would be interested to read through the PDF you put together, keep us posted!
Cheers
Finally Jadd, a positive comment from you, lol. I’m glad things turned out for you. =) keep us posted.
EURNZD - Shooting star on a great level , didn’t show it here but Fib. retracement and also the support that turned into a resistance level. the only thing is - no room to the MA but it looks realy good in terms of PA so my method in these cases are 1:1 ratio.
I’m in!
Haha yeah… Just needed some time away I guess. 
Huh, my chart looks very different. Mine shows a sad, tiny little doji and it isn’t even above the 50 SMA. I’m using FXCM with NY close charts.
Oh mine is FXCM GMT close that explains it probably. It worked good for me until now.
This looks like a great trade on the NZD/USD. Here’s the daily chart, showing indecision at a key level:
Zooming into the 4 Hour chart provides a clearer view of the price action story.
A head and shoulders has formed, indicating a likely reversal should price break above the neckline. We have some signal confluence with the inside bars that have also formed in this area, which should lend some power to the break of the mother candle, which also happens to be the break of the neckline. I’ve set a couple buy stops at 0.85613. SL will be a few pips below the recent lows and TP will be the 50 SMA on the Daily chart minus 20 or so pips.
Yep, NZD/USD looks pretty good - I’m in with a T/P: 0.8650 (I’m up to partial profit taking & scalping during the process…).
I cancelled my pending order on NZD/USD as the mother candle broke the other way before triggering my order. Will wait for more conclusive Daily PA signals.
I didn’t post last night when I set the trade, but I am long on NZD/JPY and targeting the 50 SMA which is flat. Currently down 10 pips.
I am not sure if I want to continue to take trades when the line is flat. They are definitely lower probability than trading with the trend. I’ll continue to do so in the meantime and make my decision based on the results I get.
