I do have one observation to make, which may put some folks at ease who are wondering why more has yet to be written about trading with the trend. As some have correctly pointed out, this was one of the first things Tymen talked about when introducing this method.
At this point in our lesson plan on the BB DNA (love that strategy name, so easy to abbreviate!) we have covered the core principles, the types of trades and the all-important entry rules.
So we [I]should[/I] be just about done, right?
But Tymen has made it clear he isnât done. He is going away for awhile but promises thereâs even more to be shared when he comes back. But what more could he possibly share? Some minor details to slightly improve the entry rules he already gave us? I doubt it, why wouldnât he just include them now?
I have a sneaking suspicion that the remainder of his lesson plan - to be resumed next month - will perhaps center on what weâve all been talking about today: using the DNA entry methods to capture and ride longer moves in trending pairs.
Thatâs only a pure guess on my part, of course. But Iâm beginning to suspect he wanted to get at least this much out to us before he had to leave. With what we have now, we could spend the next few weeks practicing making these entries. And, with what we know now, we could be doing at least well enough to earn some nice profits using the DNA method to scalp.
We should start a thread on pairs to hate! Mine is XAU/USD. I canât keep away from it even though it kills me everytime I trade it. Must be a power struggle thing. (We know who is going to win, donât we)
Adding to the comments from various posters about trading with the trend vs the BB DNA approach, I have been doing a similar thing to what MerchantPrince spoke about, ie: Take TP1, move SL to BE and letting TP2 ride if it is in the direction of the larger TF trend. Here is an example of what can happens if you let TP2 run.
Hachiko,
There may be be some merit in that approach.
I believe Tymen has spoken about letting TP2 ride until the opposite BB contracts, and we get a candle completely free of the BB.
Iâve modified your chart to show the entry and possible exit for that.
An alternative may be to exit when the BB we are walking contracts and we get a candle close free of it⌠In this particular case, that certainly gives a more profitable exit. I wonât speculate whether or not this is likely to be reliable or not in other casesâŚmore testing would be necessary.
On another note, Iâd be keen to see otherâs profitable (demo or otherwise) trades using this DNA system. I think it would be a great way for us to help each other learn to spot good setups. So, if anyoneâs willing to shareâŚ
Hello to all, no Iâm not dead, but I can take care of my parents are older, and then catch up on reading this thread, which is quite difficult for me because I am not bilingual.
Thank you to its PDF Merchant Prince for allowing me to enter (uh ⌠I think) the rules of grafted by Master Tymen 1.
I joinds a graph for comments and criticism from you.
As Bodyborder I go with the wave and wants to go further in DNA bollinger.
Again sorry for my English so poor.
Tymen I can not join my friend in Valencia ⌠sorry:(
thanks for trying to help!!
still, Iâm afraid I need some further explanation.
Iâve added a chart with my question.
where is the entry point for the O-O trade? in which the mid bb is alligned with tradeâs direction and entry is from one O to the other O also in that direction from begining to end (just like in the definition drawn by Tymen)?
sorry if I put you to too much trouble, I just really donât seem to get something right.
thanks for the detailed answer Iron!
but I donât see how this fits Tymenâs definition for an O-O trade, in which PA direction should be alligned with mid-bb. Moreover, in O-O trades, if I understand correctly, TP1+2 should be at the same point.
Short horizontal line marks CBL on the extreme candle. Vertical line marks entry at the open. Second vertical line marks TP2 where it touches outer BB.
I think what you are sayingâŚthat an OO almost never exists is probably correct. By the time we get a CBL and get a qualifying entry we are very often half-way to the midline. We probably never get an entry at the outer BB.
not only that, but when PA is at outer BB, mid-BB isnât alligned with our tradesâ direction. you all seem to be ignoring this part, or maybe my info isnât up-to-date, but isnât this A REQUIREMENT FOR A TRADE TO BE O-O?
In the trade I have marked with the pink CBL, you can enter as soon as the pink line is hit because it is in a squeeze region and not in a bubble or sausage.
This goes on to hit both TP1 and TP2.
Just to clarify the issue with TP1 and TP2, I donât think both TP1 and 2 is taken at the outer band, as this would render the point of having a TP1 and TP2 pointless.
I think what Tymen was trying to show in his graph was that the O-O trade goes on to hit both TP1 and TP2.
I thought a requirement of an extreme candle is that it had the highest or lowest point. Would not the extreme candle in this pic be the candle to the left? In which case the CBL would be much lowerâŚclear down to the opening of the candle that touches the mid line. I really would like some clarification on this.
not only that, but when PA is at outer BB, mid-BB isnât alligned with our tradesâ direction. you all seem to be ignoring this part, or maybe my info isnât up-to-date, but isnât this A REQUIREMENT FOR A TRADE TO BE O-O?[/QUOTE]
Where are you getting the âaligned with our trades directionâ ? Iâm not familiar with that rule. In a retrace of a bubble itâs pa of the trade is almost always against the direction of the midline. Remember the exercise he had us do? They were against the trend.
Is not the CBL drawn from the low point of the extreme candle? If so why are you saying the entry is so early? I find nothing in the CBL pdf to this effect.
no need to enter at candleâs close? I didnât see this part on merchantâs PDF.
I thought we only enter the close of the candle (which in this case would be invalid due to the size rule)
this may be the part Iâm missing. are you positive on that?
well this surely is unclear. look at the graph added. in the O-BB example both TP1+2 are hit, but he located each at the appropriate place.
My understanding of entering trades in a squeeze was that we donât need to wait for the 2 rules, the first being to wait for a close and the second being to wait for a candle with a smaller body.
Iâm sure someone more experienced can shed some light on this matter.
