A friend and I have been trading using this method for some time now...and would like to share. On any pair put a time frame of 5 minutes. Bollinger band at default settings 20/2. Stochastic (slow) settings at %K=10 %D=6 and %D slow=6. RSI (Relative Strength Index=14. 5 EMA When a candle breaks through the upper or lower band and the rsi is over bought, or over sold this is the time to look for a "GIMMIE" candle. The (reversal) candle after the break is the "GIMMIE" candle. RULES: 1.(break of top of band)gimmie bar has lower close then open and must be on inside of BB.
2.(lower band)gimmie must have higher close then open.
3.Stochastic is in favor of gimmie.
4.RSI is over bought, or over sold. 30 and below is over sold...70 and above is over bought.
ENTRY POINTS :
(break of lower band)high price of gimmie plus 2 pips.example:high is 1.2785 plus 2=1.2787 is entry point. Or price is higher then the 5 EMA, which ever comes first. (break of higher band)low of gimmie candle,- 2 pips.example:low of gimmie is 1.2785 minus 2=1.2783 is entry point. Or pirce is lower then 5 EMA, which ever comes first.
EXIT POINTS:
1.Price goes to other band and reverses, but wait for reversal, or over bought or over sold is the key .
We have had very good trading using this method. Hope this helps anyone to better their trades, like it did us!
2.(lower band)gimmie must have higher close then open.
3.Stochastic is in favor of gimmie.
4.RSI is over bought, or over sold. 30 and below is over sold...70 and above is over bought.
ENTRY POINTS :
(break of lower band)high price of gimmie plus 2 pips.example:high is 1.2785 plus 2=1.2787 is entry point. Or price is higher then the 5 EMA, which ever comes first. (break of higher band)low of gimmie candle,- 2 pips.example:low of gimmie is 1.2785 minus 2=1.2783 is entry point. Or pirce is lower then 5 EMA, which ever comes first.
EXIT POINTS:
1.Price goes to other band and reverses, but wait for reversal, or over bought or over sold is the key .
We have had very good trading using this method. Hope this helps anyone to better their trades, like it did us!
First my stop is 20 pips on every trade. The gimmie bar must be on the inside of the BB,+ or - 2 pips. I also foregot to say, I have a EMA of 5 to help me enter, and exit. Sometimes it helps me get in sooner, sometimes not. As soon as it crosses the 5 EMA, or the 2 pip rule comes in to play, I am in. I also try to only enter after the RSI has crossed over the 70 or 30, then re-crossed below the 70 or 30. My exit is held until stopped out, or if I started the trade at over sold...I exit when the market is over bought. I (NEVER) enter a trdae mid way from BB to BB. There will be lots of trades through the day. As for win/loss...I have not been stopped out as of yet,(knock on wood). I have exited before being stopped out cause you know a bad trade when you see one!&^&^%$@$! I have exited before being stopped out only to have the market laugh at me and tell me ...trust the indicators. When the price reaches the other BB, I do as stevegee58 has posted. I eixt 50% of my units cause you don't know what is going to happen at that point.As for win/loss...I am so happy with the system...that I trade no other way, and I have tried a lot of ways. I would say 8 out of 10 trades are good. Out of the two bad ones, it is me that fails, not the system!!!