The moving average is going donwards and is not straight nor in the direction of the trade so it is not a valid trade in my chart however look at CAD/CHF and AUD/NZD on weekly charts.
Ok, thanks for the heads up.
I try to put my stops just above the previous high or below the previous low. Or , I just make it half of the distance to the 50 line. Many times i just open trades and put stops and limits later. Sometimes I put just a trailing stop.
when I am getting close to 100 pips many times I just close my trades manually. āMake Pips, Keep Pipsā
I am in this trade. Went Long at 95.36 I am going to put a stop at 95.00 and target the line at 96.36
Entered this trade and also on CAD/CHF but on weekly chart. I remember you posted some charts earlier trading on the weekly chart so do you still trade on that TF or only on daily?
thxs for Sharing
Hi everyone, been following this thread for a while and this analysis does in fact work, although you would need another trading strategy as opportunities for the Rubber Band Trade are few and far between 
I have gone so far as to get an indicator developed through MQL5 for this strategy. It allows you to track the 50SMA and how āflatā it REALLY is rather than relying on visual analysis.
So sometimes the 50SMA may look flat but it has actually changed by xPips which isnāt ātrue"flat. I have got this indicator created to be able to track this parameter. So the indicator will be red when each period closes and the SMA has moved more than you believe it needs to stay to be considered āflatā (more on this parameter later), then once it has remained flat for 2 periods it will turn orange, then when the 50sma has been flat for 3 periods it will go green. It also allows you to change the sensitivity to what you consider to be"flatā whether flat means NO change at all - 0.000000 or whether flat means it mustnāt move for more than 1 pip 0.00001 etc.
[When you must remember is that this indicator TRACKS the moving average constantly, which is good and bad.
Bad - because it means that whatever timeframe you are trading the indicator MUST CLOSE GREEN, and it can show up as green DURING a period so the trader must wait until that period ends and for the colour to still be green for a valid signal.
Good - because it simply DOES track the moving average and allows the trader a dynamic view of the āflatnessā of the Moving Average in question.
It also allows you to change which Simple Moving Average you would like to track.
It also shows you the distance of the Bid when price is above the moving average and the distance of the ask when price is below the moving average to help traders gauge how much room the have for profit when targeting the MA.
Let me know if any of you are interested as right now Iām talking to the developer about copyright and giving it away, once I know then Iām more than happy to share it with whomever wants it!
As you can see, the RubberBandIndicator is Green [TOP RIGHT] (if it closes green it would mean 3 closed periods where the 50SMA has been flat) and I have set it to alert me when the 50SMA doesnt change beyond 1 pip. (So here āFLATā is where the SMA doesnāt move more than 1 pip.
The indicator [BOTTOM RIGHT] is also relaying the distance of the ASK price from the 50SMA, (for help in determining risk appetite and potential targets in relation to the trends/bias/sentiment on higher timeframes)
Trading in Line with Higher TF the Daily and Monthly are in Strong Buy (Bias) and price is near a key level.
Nice analysis buddy and yes if you could share the indicator it would be more than helpfuk
The ONLY downside to this indicator is that while measuring the fluctuation of the Moving Average and the Distance of price from the moving average simultaneously which is extremely useful in this strategy. It canāt show whether the moving average has gone up by a specified amount or gone down i.e. We want to buy when price is Below and the MA is ABOVE + FLAT and/or angled up and vice versa for a SELL trade. This indicator doensāt relay the incline but hey! Halfway there. Those than use this strategy, I hope this indicator can help you!
Thanks! , just waiting for a reply from the developer as itās the first custom indicator I have got developed so once he gives me the OK to share it with the community I will post it up here ASAP
Thanks! , just waiting for a reply from the developer as itās the first custom indicator I have got developed so once he gives me the OK to share it with the community I will post it up here ASAP
This is on a H1 chart so I set the sensitivity to 1 PIP (0.0001) on the indicator parameters. An example of how this indicator can be utitlised to trade this strategy. This was taken today.
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This is on a USDCHF chart - H1 - and the Investing.com Daily and Monthly technicals for the DAILY and MONTHLY are UP. Also you can see the indication of green happens right at a key 4H support levels.
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The indicator closed Green, and with the analysis a trade could have been entered. It is no secret that the indicator TRACKS the Moving Average and it is up to the trader to see if it is still green when the period closed. In this case it was but then quickly turned red upon the new period open. Bearing in mind that for it to go green it would have to be flat for 3 periods and it was!
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As you can see price bounced off the H4 level, in the direction of the Higher TF BIAS and the indication from the RubberBandTrader indicator going green upon the close of the last bar. It also shows you the distance of the ASK price from the level showing you how many pips of POTENTIAL profit can be made if you target the SMA. (Personally targeting the 50SMA is a little ambitious and arbitrary as that level is always changing so I prefer to target a Support/Resistance of Pivot point. (I.e. the daily PP you see in the chart below)
3- Gyazo - 709863d5515cc466a38a07d3e6fd0a1f.png
So you have it, An example of how you can use the indicator to trade the Rubber Band Trading Strategy
UPDATE**
- If targeting the DAILY Pivot Point, would have seen a successful trade here, with good entry timing, as you can see from the screenshot below the Indicator is STILL green, indicator that there is still move steam in the move toward the 50SMA. (Green indicating that the 50SMA hasnāt moved or changed more than 1 pip - of which I specified in the parameters)
Hi all, I strayed away from watching for Rubber Band setups for awhile but just came back to it the past week+. Happy to say that I had a very positive outcome, shorting the GBP/JPY. Jumped in last Friday Oct 3rd morning ET after seeing the setup. Prolly could have gotten in earlier but oh well. Price was coming off consecutive down days, still above the 50 SMA which was trending upward. I set my T/P at the 50 SMA for about 153 pips profit and S/L at roughly the same distance loss.
I like to plot a Bollinger Band set at 50,2. The STDās are just to see ranges and trends. I was negative for parts of Friday and Sunday but never hugely so, which made it easier not to panic. Monday and Tuesday have produced strong downward movements; I rewrote my T/P to match slight changes in the 50 SMA and hit profit a couple hours later.
146.9 pips profit! All in all, very very happy! (This is traded on a real account).
hey so if you use the 50,2 than the 50SMA and the middle BB are the same so when the Middle BB or 50SMA is flat than you wait for the price to reach the upper or lower ranges to enter the trade?
Yes, I do use the upper & lower bounds but only as a rough guide. It depends on the pair and where itās trending or ranging. I think it works better on a pair that has been ranging for a couple months. But for something like the USD/JPY which has been trending strongly lately, not so much.
Hey thanks for the indicator will try out right away 
Hi folks, another Rubber Band update from me. Iām sure most of you have been monitoring USD/JPY as it had been on a very steady upswing for awhile. But where to get in on a rubber band trade? After seeing a double-top last week, I waited another day before jumping in. Itās been a wild rideā¦ negative for a while, then ranging between 60-70 pips profit. As you can see for today, the pair tried to retrace (dropping me to 30 pips profit and a bit of a panic) but then dropping strongly and hitting my T/P at 159.4 pips!!
One thing which I did was to re-adjust my T/P as the 50 SMA moved. The original T/P was just under 200 pips but as the 50 SMA continued to move up, I ended up with ~160 pips. What do folks think about moving the T/P as the 50 SMA moves? Or should one leave T/P where the 50 SMA was when first entering the trade?
On to looking for the next Rubber Band!