no idea. my guess - he wasn’t focused
(hehe I hope I’m not wrong)
hmm well according to this thread you should be looking for entries in this bubble, not exits. (I made sure no O-BB entries were possible earlier, before bubble started to take shape, because the size condition isn’t met)
in this case, no entries can be taken if I understand this system correctly.
if you’re still into making an exit then according to what was taught here candle 4’s closing is the right price since the contraction starts (simple exit) indicating the bubble’s coming to an end.
You are right 6,7,8 candles look like they all close at he same level, I was just giving Tymen the benefit of the doubt that there might be a 1 pip difference.
But not sure I could enter that close to the Mid-BB.
candle 6 is not the extreme since it makes you get the CBL to a worse entry.
candle 5 remains the extreme. all according to Tymen’s post on that graph.
yeah I agree with you disagreeing with me :). in the example gregart gave there was an enter from the opposite position.
in this part I think you’re forgetting that PA never reaches CBL, so that alone can never trigger the trade.
we all still await Tymen to explain weather CBL can be drawn before contraction and only accessed (entry) after, or it must be drawn after by all means.
[QUOTE=parsush;187214]candle 6 is not the extreme since it makes you get the CBL to a worse entry.
candle 5 remains the extreme. all according to Tymen’s post on that graph.
Your right candle 6 would lower the cbl and Tymen said not to do that.
It is just hard to call a lower high extreme to a higher high. :o
Let’s make a short list of rules and conditions so we can all be on the same track here, OK? If we make this step by step, like a computer program, we should all have the same understanding and be able to sort out any questions or forward them to Tymen. I’ll start and others can correct me, improve my words and add to it:
An Extreme Candle should penetrate the BB in the direction against the trade.
If a subsequent candle penetrates the bb further against the direction of the trade before entry, it becomes the new extreme candle.
After the extreme candle closes, the CBL is drawn from the top of the extreme candle and wick (for long trades) towards the right, or from the bottom of the candle and wick (for short trades) towards the right.
After the extreme candle closes, a signal candle must occur before entry. The signal candle must have a smaller body than the extreme candle. It must penetrate the CBL and close in the direction of the trade.
For a valid entry, the opposite bb must contract toward the mid bb by the close of the signal candle. If it does, entry is upon the open of the following candle.
OK, am I right so far? anyone want to add/change? How about adding the rules for SL and TP1 and TP2?
One thing we did talk about, though, was the definition of extreme candle.
It was mentioned earlier that after the first extreme candle that penetrates the BB, the other extreme candles (from which we can draw CBLs) did not necessarily have to penetrate the BB but just to have a higher high or lower low than the previous extreme candle.
I’m not sure if this is a concrete rule of Tymen’s, but it certainly does answer some questions related to the samples charts Tymen posted earlier.
An Extreme Candle should penetrate the BB in the direction against the trade.
If a subsequent candle moves further against the direction of the trade before entry, it becomes the new extreme candle.
After the extreme candle closes, the CBL is drawn from the top of the extreme candle and wick (for long trades) towards the right, or from the bottom of the candle and wick (for short trades) towards the right.
After the extreme candle closes, a signal candle must occur before entry. The signal candle must have a smaller body than the extreme candle. It must penetrate the CBL and close in the direction of the trade.
For a valid entry, the opposite bb must contract toward the mid bb by the close of the signal candle. If it does, entry is upon the open of the following candle.
Nice work Graviton! This is a good idea to really straighten things out
For point #2, I would add the following condition: Provided it’s low is higher than the previous extreme candle’s low (vice-versa for long). See Tymen’s comment that we never lower the CBL.
And regarding point #5, my understanding was that the contraction must occur by the extreme candle, rather than the signal candle. Look at candle 6 in Tymen’s post #2319.
An Extreme Candle should penetrate the BB in the direction against the trade.
If a subsequent candle moves further against the direction of the trade before entry, it becomes the new extreme candle; provided it’s low is higher than the previous extreme candle’s low (vice-versa for long). We never lower the CBL for short trades or raise the CBL for long trades.
After the extreme candle closes, the CBL is drawn from the top of the extreme candle and wick (for long trades) towards the right, or from the bottom of the candle and wick (for short trades) towards the right.
After the extreme candle closes, a signal candle must occur before entry. The signal candle must have a smaller body than the extreme candle. It must penetrate the CBL and close in the direction of the trade.
For a valid entry, the opposite bb must contract toward the mid bb by the close of the signal candle. If it does, entry is upon the open of the following candle.
How’s this, any more suggestions?
WRT mkbrooks suggestion about point #5, I feel that it’s an either/or situation. The sequence can be extreme candle, BB contraction, signal candle OR BB contraction, extreme candle, signal candle. Other points of view welcomed……
An Extreme Candle should penetrate the BB in the direction against the trade.
If a subsequent candle moves further against the direction of the trade before entry, it becomes the new extreme candle; provided it’s low is higher than the previous extreme candle’s low (vice-versa for long). We never lower the CBL for short trades or raise the CBL for long trades.
After the extreme candle closes, the CBL is drawn from the top of the extreme candle and wick (for long trades) towards the right, or from the bottom of the candle and wick (for short trades) towards the right.
After the extreme candle closes, a signal candle must occur before entry. The signal candle must have a smaller body than the extreme candle. It must penetrate the CBL and close in the direction of the trade.
For a valid entry, the opposite bb must contract toward the mid bb by the close of the signal candle. If it does, entry is upon the open of the following candle.
A multiple entry approach is used when entering the trade.
SL is placed just above the high of the extreme candle wick for short trades and just below the low wick of the extreme candle for long trades.
TP1 occurs when the price crosses the BB mid line, (at close or any time during candle formation ) at which point, one trade is exited and SL moved to 38.2% Fib (retracement point of no return).
TP2 occurs when price crosses the opposite BB if the BB is a bubble, otherwise TP2 occurs once an opposite entry signal is generated.
Needs more suggestions please as my understanding is limited…:o
) at which point, one trade is exited and SL moved to 38.2% Fib (retracement point of no return).