Hello dear all, this thread grows quickly, I am 10 pages back again, but still everything interested.
So thanks Tymens again for the exit method, and thanks Dodge for all your support and I am very interested in what you said regarding Oanda, by current broker. I going right now to watch the video, as soon as I submit this post.
Thanks
P.D. Tymens, I have also gain in the last 2 o 3 weeks more pips than ever, near 400.
Edited for PD2.
P.D2. Dodge, did you delete the Oanda video from Youtube?. May be you already have comment about it, if so, I sorry, I will read soon.
Can anyone show me the easy way to open 2 contracts at one time … often times the 2nd trade is few pips away by the time i finish the 1st one and makes me doubt to open the position.
Can’t wait for the enlightrnment. You don’t know how frustrated I have been trying to trade BB breakouts. Tried the 5min TF 1st, then the 15min. Any candle breakout seems only temporary and 1 or 2 candles after the BB trumpet, the PA returns back into the channel again resulting in a drawdown. Hard to tell which is the real breakout out of the candles that close outside the BB squeezes. I been keeping track of my trades and I got a whole load of screenprints showing failed BB breakout trades i been trying in the last month or so.
I watched a video the other day by a guy who basically outlined a system which was very similar to the BB DNA method. He also covered BB breakouts and what he mentioned using to determine whether it was a true, long breakout was a 10% climb in the ATR of the pair in question.
The details of his strategy were:
[B]BB Breakout rules Daily[/B]
Enter open of 1st candle after confirmed breakout and ATR climb of 10%.
· Two lots
· Limit 1st Lot = 100 pips
· Limit 2nd Lot - 250 pips
· Stop is either middle of BB -45 or +15 of breakout candle low (>)
Found it. It was called “Trading with Bollinger Bands and the ATR”. I have a copy of it on my HD. Click here for one link to watch it on the web, I’m sure you can find others.
Hello dear all, I am not only trading in the currency market, but also I have my mortgage in multi currency, in fact, my mortgage is on JPY, so for me it is very important the pair EUR/JPY.
The next chart shows you the daily chart, and I thought that it was forming a BB walk, but more than expand the BB, they are doing the same movement, so I didn’t care before of such figure… so my question for the experts is:
This figure could be the begining of a Sausage? or just continuing with a squeeze area…
There is no sign here of any breakout in BB bubble or sausage form.
You could simply exit or wait another candle to confirm suspicions.
The waiting could reveal the possibility of a breakout but it could also be a lesser candle, in which case you would score a lesser profit.
But added to the 4 rules I gave already, (#4075 page 408) we have these >>>
[B]RULE 5 - After the signal candle (Rule 1), entry is made on the next candle if and only if the price action on this candle passes inwards to touch/go thro the 1. standard dev. BB.
Entry is made upon the touch/pass thro or better.
A 2 contract entry allows the 1st entry to be improved upon with the 2nd contract.
RULE 6 - If the BB does not expand again with the entry candle, then no entry is made.
RULE 7 - If, after making entry, the next candle (signal candle, entry candle, next candle) does not show both BB expanding, then a quick exit is made for safety.[/B]
These rules are a bit scattered at the moment and I will put some order into them.
Here is a case of how to enter a BB breakout >>>
The Rules
We are coming from a squeeze area (Rule 2).
At the black vertical line, the candle clearly passes thro the upper BB (Rule 1).
At the black vertical line, the outer BB are expanding and the mid BB is rising (Rule 3).
The candles have developed in a nice stepwise manner up to the signal candle (Rule 4).
The BB continue to expand at the entry candle (shown) (Rule 6).
The entry is made when the price action touches or passes inwards thro the BB of standard deviation = 1.5. (shown) (Rule 5).
The next candle after the entry shows the BB still expanding so we stay in the trade (Rule 7).
Now the PSAR/mid BB stoploss method can be used to effect a quality exit but this is really intended for full DNA trades.
I am working on a shorter stoploss that gives quality exits just tailored for this shortcut method.
You can see that by entering at the inward 1.5 BB point we set ourselves up for an immediate profit as the price action expands to the outer BB and beyond.
This should inspire a real confidence.
Furthermore, an extra contract can be added at the opening of the next candle.
This should only be done twice, giving 3 contracts in all unless you made a double contract entry in the first place.
Here are the possibilities…
entry - 1 contract.
open of next candle - add a contract.
open of next candle - add another contract.
[B]
3 contracts in all.[/B]
[B]OR[/B]
entry - 2 contracts.
open of next candle - add a contract.
open of next candle - add another contract.
[B]
4 contracts in all.[/B]
Do NOT go above these limits - there will be a certain amount of retracement before the exit and you do not want to be caught out. :eek:
Here we have a BB bubble with a BB walk on the lower band with excellent profit potential.
The area in the square is the entry area and will be magnified in the next post.
Assuming we are in the trade, note how the PSAR follows the price action down.
When the PSAR inverts, the trailing stoploss is halted, and an extension line is drawn from the last standard point.
The closes of the candles do not cross the stoploss extension line, so we stay in the trade.
The PSAR then reverts back to standard.
The rules state that if there is an outer BB hit after the PSAR reverts to standard, then we exit at the hit point.
This exit is shown.
It is truely excellent.
the outer BB,
the mid BB,
the PSAR
and the 1.5 standard deviation BB (thin line).
At the completion of candle A (black vertical line) we can see that both outer BB are starting to expand and the mid BB is starting to go down.
At candle B, we note that the upper BB is no longer expanding and we cancel entry (Rule 6).
At candle C, (blue vertical line) both BB are expanding again so an entry is again possible.
This entry is made at the 1.5 standard deviation BB as shown on the chart.
At candle D, the outer BB continue to expand so we stay in the trade.
1 – We are coming from a squeeze area (Rule 2.)
2 – The candles have developed a nice stepwise manner up to the signal candle (Rule 4).
3 / 4 – At the black vertical line, the candle clearly passes thro the upper BB (Rule 1)
3 / 4 – At the black vertical line, the outer BB are expanding and the mid BB is rising (Rule 3)
5 – The BB continue to expand at the entry candle (shown)(Rule 6.)
6 – The entry is made when price action touches or passes inwards thro the BB of S.D. = 1.5 (shown) (Rule 5).
7 – The next candle after entry shows the BB still expanding so we stay in the trade (Rule 7).
I only combined 3 / 4 becuase it seems that IF at the black line the BB are not expanding, it won’t matter if price clearly passes the upper BB and / or visa versa – - - if price doesn’t clearly pass the upper BB, then it just doesn’t matter if the BB are expanding.
Hi tymen
I just have finished reading your new rules. they really great!
It looks like 1.5 standard deviation is truely nice entry method that I have been missing! thanks! Its really nice rule!!!
I am thinking how do you see that BB is no longer expanding? IS your eyes such sharp?? or you have some sort of code that tells you about BB behaving?
Should we use rule 6 every time when BB is no longer expanding which can be every time with any retracement candle?
Here is why –
I read post 4132 – and found an exercise in 4134 to put in order and so I was working that and submitted, just quickly glancing over the other posts - -and noticed there was an exercise 2.
At this time I don’t know what exercise 2 is nor do I care, and so I noticed the graphic on the short trade displayed as well –but again no attention to detail. Post 4135 and enhanced view in post 4136.
Anyways I decided before I read what Tymen said, I am going to apply the rules I just read to this trade and see if I come up with a valid entry.
And so I said to myself – candle A – black line as price passed outer BB and BB’s are expanding, and I really didn’t notice nice stepping to it, but hey, no one is perfect, then I thought point B - - The BB didn’t seem to be expanding more of a flattened out o shucks that breaks the rules – and also point B did not pass through the 1.5 inward. But now point C - - BB started expanding again and passed inward of 1.5 so I labeled nearly the high of candle C as my entry point. (now go read Tymens post - the comments have similarities)
This post has a dual purpose - one for me to confirm I am learning correctly and two to congratulate Tymen on a teaching style that put quite simply is superior.
I mean come on - - You have some teachers that have all the resources – they have you in a classroom – speaking – auditory – and they give you homework – practice – and the show you physical motions I am not good at explaining this, but Tymen is afforded 1 delivery method – visual.
I was a teacher for 2 years – and I was not very good, I know this and I accept this and I have no problem with this, but I want anyone and everyone who reads this thread to know that
