[B]The slope of the mid BB is critical to determine whether the price action is going to cause a trade to succeed or fail.[/B]
Do you have a rule for entering at the mid BB? or should we drop down to the next lower TFâŚsuch as the 5 min in this case.
I know youâre looking for Tymenâs input on this, but I thought Iâd jump in too, as I think this is an interesting question.
As I understand it, PA could go anywhere from the mid-BB, so any entry there would be fairly risky, however I have noticed that we might make good pips by entering at the mid-BB in a sausage.
For example, in a down-trending sausage, entering short at the top of a retracement to the mid bb, and then doing TP1 at the outer BB, and TP2 via a simple-exit if (likely) the PA walks the BB.
SL placement would be keyâŚ
Thoughts?
A specialised work all on its own, [B]mkbrooks[/B].
Well beyond the scope of this thread - it would require a new thread of its own.
I have looked into it and I do not like it - too many problems.
I agreeâŚespecially when entering in the direction of the higher time frame trend. Whenever you see a nice trending sausage (BB walk) pa does not often often cross from outer to outer. Seems like it usually is from outer to midline. PA in a level sausage or squeeze will travel from outer to outer much more often.
Indeed, it would certainly be a work on it own, youâre right.
I might leave that one alone :eek: âŚat least for the time being 
I might add Iâve been making good pips this evening with the âstandardâ BB DNA method. Iâll continue testing (as we all will, Iâm sure!) and hopefully weâll have some good feedback for you when you return, Tymen.
Hereâs a trade in progress. Comments on the various placements and entry point welcomed. I will post the results as well.
Just as I thought, the price action has reversed back to the mid BB >>>
This just goes to show how critical that mid BB is. 
However, the trade is not finished yet, so we will see.
So, did you have an OM long trade on there?
Wouldâve been a nice quick profit!
My full time job takes up too much of my life! Canât spend as much time I would like trying it out. However I got a few questions about the the CBL method for the Bubble and Sausage that I hope someone can help with.
- I understand one requirement to start drawing the CBL is for the contraction of the opposite BB. In the image shown, the opposite BB goes level for 2 candles starting at the 1st blue vertical line drawn and then goes down after the 2nd vertical line drawn. Donât want to split hairs but would the valid CBL start being calculated after the 1st blue line or after the 2nd blue vertical line? It can be around 10 pips difference here
-
The stop loss for bubble/sausages are calculated using the fibonacci retracement level or the low of the CBL candle?
-
Am I right to understand that in a long entry it never be lower than the CBL? (and vice versa in a short entry) In the case where there is a close of a candle above the CBL that is longer than the CBL candle. The PA then moves back down below the CBL and only then a smaller body candle is formed below the CBL but before the extreme low is reached, this is not a valid entry right as it is below the CBL?
It is not in a bubble. It in a down trending sausage. Tymen commented earlier on the charts that I posted on this pair. With the steep downward slope on the mid line he would not expect it to retrace to TP2âŚon the 15 min. He was exactly right. Look at it now, it is following the midline down.
Something we should take note ofâŚIs the retracement going against the larger TF trendâŚhow steep is the mid line slope?
Isnât the opposite BB still expanding there mate? Its starting to contract after on the 2nd green candle after your red one where you did your CBLâŚ
Ahhh. 
That short squeeze just before the entry finishes the sausage!!
[B]hachiko [/B]is now on a new pattern - we do not know what is will be yet.
The CBL is good, the entry candle is good (it is just inside the opposite BB contraction).
But, you need to wait till the next candle to enter - and that is not on your chart yet.
(but then you could enter on the close of the âsmallâ candle - the same as the open of the entry candle - so yes, it is valid [U]if you are quick enough[/U], that is the problem.).
Something we should take note ofâŚIs the retracement going against the larger TF trendâŚhow steep is the mid line slope?
I have avoided making a rule - âdo not trade against the mid BBâ, because there are many instances in a level/squeeze case where the mid BB goes against us, yet we get both TP1 and TP2.
Yet, when we do trade against the mid BB, we generally trade against the major TF trend. :eek:
The extreme candle that becomes the CBL can be found [U]anytime[/U].
The entry, however, must be within the confines of the opposite BB contraction.
NO.
The extreme candle for the CBL can be found [U]anytime[/U]!!
It is only the entry candle that must be within the confines of the BB contraction.
- The stop loss for bubble/sausages are calculated using the fibonacci retracement level or the low of the CBL candle?
No hard rule on this - you choose but be consistent.
- Am I right to understand that in a long entry it never be lower than the CBL? (and vice versa in a short entry) In the case where there is a close of a candle above the CBL that is longer than the CBL candle. The PA then moves back down below the CBL and only then a smaller body candle is formed below the CBL but before the extreme low is reached, this is not a valid entry right as it is below the CBL?
You have totally confused me with this question. 
This one may be best formatted in a chart - then I will know what you are asking.
Hi Alan
I think that what you are asking is
when entering a long trade, Must the first smaller candle close above the CBL or having had a close above the CBL on a large candle, is a small candle closing below the CBL valid
Thanks. I understand the 1st 2 answers completely. Sorry for the 3rd question. Hereâs the diagram.
The smaller candle than the CBL candle has to be above the CBL in a long trade even if the CBL was penetrated by a longer candle prior? Therefore the entry on the smaller red candle shown in the diagram is invalid. I think I am correct but would like to confirm.
what do you guys think about this one:
I havenât pointed out TP2 since it may be on outer bb or it could go for a bb walk, because when price is in midway I think mid bb would be alligned with us for a possible O-BBâŚ
so whatcha think? is it valid? is it gonna make us all rich? 
OK, lets take a [U]long [/U]entry.
We have an extreme candle from which we extend the CBL.
[B]We look for âŚ[/B]
-
a close [U]above [/U]this CBL.
This means that the price action has momentum in the up (long) direction. -
This [U]same [/U]candle must be smaller than the extreme candle.
Now if the close is above the CBL, does this mean that the whole candle must be above the CBL?
NO.
The open and the low can be on the other side of the CBL.
That is not a problem.
[B]The easiest way to see this is to understand the logicâŚ[/B]
-
Close above CBL means momentum in the trade.
-
Smaller candle suggests that we are at a turning point rather than in the middle of a full on breakout.
In summary, it does [U]not matter[/U] where the smaller candle is, as long as the close is [U]above [/U]the CBL in an [U]up (long)[/U] trade. (momentum).
The rest of the candle can be on the moon for all we care!! 
So, in your diagram, assuming [U]going up (long), [/U]your smaller candle has its close on the [U]wrong side[/U] (below) of the CBL.
This is no good!!
Hope this helps.
What do I think?
Its very dark - I need a torchlight!!
Sorry, I cannot see anything.
Someone else will have to discern this one.
I like white backgrounds where you can see!!