I dont usually measure it , I just eye ball it just above or just below the 50 line. Once I place it then I measure it just so I know what my limit is.
[QUOTE=“jadd806;624799”]The rubber band is stretching on USD/RUB; too early for an entry yet but I’ll be watching how the next candle or two closes. <img src=“301 Moved Permanently”/>[/QUOTE]
Planning to go short?
So all in all you had 3 succesfull trades and you are up 44% in equity ? What is your risk per trade ?
No, it is (was, it apparently already reversed to the SMA overnight) a potential long trade if the SMA stayed flat. This trading method is based on mean reversion so we are always looking to trade back toward the SMA.
I put pairs on my watch list if they’re in a value area as defined by the position of price versus the action of the SMA. Like this one was. We then wait for the price to be at a support and resistance area. If the price action indicates that the level is holding, I then enter.
So there’s a few filters, and the price action one is discretionary. You need to be patient for the set-ups but if you watch a lot of charts you should get 1-2 good trades each week.
Hi rjmah, SMA you use simple or smooth.
Thanks for the attention.
Jan
it is a simple moving average.
I started trading The Rubber Band Trade on April 2nd . 9 trades … 8 wins 1 loss … real account up 113%
USDJPY about 80 pips to the line from the current price, probably will go lower before heading back to the 50 line.
GBPCHF I am a bit hesitant to enter this trade , I added a trend line , It is about 100 pips to the 50 line. It is a rubber band trade right now. It is a volatile pair.
[QUOTE=“rjmah319;625960”]USDJPY about 80 pips to the line from the current price, probably will go lower before heading back to the 50 line. <img src=“301 Moved Permanently”/> GBPCHF I am a bit hesitant to enter this trade , I added a trend line , It is about 100 pips to the 50 line. It is a rubber band trade right now. It is a volatile pair. <img src=“301 Moved Permanently”/>[/QUOTE]
At what levels you recon it will be safe to enter this trade
Hey guys been following this thread since it started and actually went in live on both trades aud/nzd and gbp/nzd and made lots of pips last week. What do you guys think of gbp/cad??? Looks like a good trade to me, just waiting to see what tomorrow’s news will do to both gbp and cad
GBP/CAD doesn’t look like there’s any separation from the line to trade into.
I’d have to see it test the bottom of the range and reject a move lower. Maybe we will get that today or tommorow. But I’m very cautious with my trading and I like to wait for price action to tell me where the market is going. If you’re feeling more risky you can enter at the support level. I think your individual trading style and risk tolerances can really come out in this method.
are you asking question?You should put question mark. If you see the chart you will know.
[QUOTE=“mario777;626272”]are you asking question?You should put question mark. If you see the chart you will know.[/QUOTE]
Thanks for teaching me. I went short at 102. Looks like close the trade and go long again. Please teach me again
[QUOTE=“jadd806;626264”]I’m in on USD/JPY. <img src=“301 Moved Permanently”/>[/QUOTE]
Thanks Mate. Closed the short trade and went long. Looking good
Yeah hopefully. I’m at 1 win and 1 break-even so far with this method.
Seems like GBP/NZD might be forming into a valid trade. Perhaps after re-touching recent highs at 1.96750 it will go back towards the 50 SMA.
Brutus
