Hi, Guys,
I was just fooling around with the charts this morning and discovered something, that could be the next breakthrough for me as a little theorist who hasn't actually been trading yet...So it's just theoretically to hear what you say and think about it. Because I just discovered it this morning there are no backtest results yet but looking over the chart it looks a little promising
It's not based on anything! It's just the result of sitting and combining..
The first thing for you to do now is to download the Template and the Fama...Done?
So here are the rules:
Settings:
Have your chart on M30 and on the USD JPY pair
Rule nr 1
As a bubble closes take the third candle that didn't touch (touch to me includes the High and Low)the upper/lower line of the Bollinger Bands. If this is the case look that the candles in this time didn't cross the FAMA or the straight BBs(stands for Bollinger Bands)
If the chart left through the upper BB:
Place the stop loss on the High of the Bubble the chart left. Go short at the open of the third candle if it doesn't open below the Fama/BBs.
Set the FAMA/BBs line as take profit.
If the chart left through the lower BB:
Place the stop loss on the low of the Bubble the Chart left. Go long at the open of the third candle if it doesn't open above the FAMA/BBS line. Set the FAMA/BBs line as take profit.
If the chart didn't hit the FAMA/BB line close the position as the first candle opens WITHIN the next bubble.
If the chart exceeded the high of the bubble it left before the third candle is not in touch with the bands, no trade takes place.
Rule nr 2
You can also trade within the Bubble if you want...it might give you some extra profits.
In a downtrending Bubble:
A bubble is downtrending when the Middle BB (also simple moving average = SMA) is facing downwards.
You just enter long trades in a downtrending bubble!
Your entry point is the candle after the candle
that doesn't touch the lower or upper BBs. You enter at the open of it. Your Take profit is the upper bollinger Band.
In the case the Chart leaves the Bubble through the lower BB Close the Position as the first candle opens below it.
In an uptrending Bubble:
A bubble is uptrending when the SMA is facing upwards.
You just enter short trades in an uptrending bubble.
Your entry point is the candle after the candle that doesn't touch the lower or upper BBs. You enter at the open of it. Your Take Profit is the SMA.
The chart may leave the bubble. you just wait for the chart to touch the SMA. no stopp loss because the chart will touch the SMA anyway. looking at the chart you may gain some Profits rather than having a stopp loss it rushes into.
In a non decisive bubble:
You take the rules of the bubble the SMA first moved to...no matter which direction it takes after...
So that's it really...hope you could cope with my English...and post your thoughts about this system...:nerd:
I was just fooling around with the charts this morning and discovered something, that could be the next breakthrough for me as a little theorist who hasn't actually been trading yet...So it's just theoretically to hear what you say and think about it. Because I just discovered it this morning there are no backtest results yet but looking over the chart it looks a little promising
It's not based on anything! It's just the result of sitting and combining..
The first thing for you to do now is to download the Template and the Fama...Done?
So here are the rules:
Settings:
Have your chart on M30 and on the USD JPY pair
Rule nr 1
As a bubble closes take the third candle that didn't touch (touch to me includes the High and Low)the upper/lower line of the Bollinger Bands. If this is the case look that the candles in this time didn't cross the FAMA or the straight BBs(stands for Bollinger Bands)
If the chart left through the upper BB:
Place the stop loss on the High of the Bubble the chart left. Go short at the open of the third candle if it doesn't open below the Fama/BBs.
Set the FAMA/BBs line as take profit.
If the chart left through the lower BB:
Place the stop loss on the low of the Bubble the Chart left. Go long at the open of the third candle if it doesn't open above the FAMA/BBS line. Set the FAMA/BBs line as take profit.
If the chart didn't hit the FAMA/BB line close the position as the first candle opens WITHIN the next bubble.
If the chart exceeded the high of the bubble it left before the third candle is not in touch with the bands, no trade takes place.
Rule nr 2
You can also trade within the Bubble if you want...it might give you some extra profits.
In a downtrending Bubble:
A bubble is downtrending when the Middle BB (also simple moving average = SMA) is facing downwards.
You just enter long trades in a downtrending bubble!
Your entry point is the candle after the candle
that doesn't touch the lower or upper BBs. You enter at the open of it. Your Take profit is the upper bollinger Band. In the case the Chart leaves the Bubble through the lower BB Close the Position as the first candle opens below it.
In an uptrending Bubble:
A bubble is uptrending when the SMA is facing upwards.
You just enter short trades in an uptrending bubble.
Your entry point is the candle after the candle
that doesn't touch the lower or upper BBs. You enter at the open of it. Your Take Profit is the SMA. The chart may leave the bubble. you just wait for the chart to touch the SMA. no stopp loss because the chart will touch the SMA anyway. looking at the chart you may gain some Profits rather than having a stopp loss it rushes into.
In a non decisive bubble:
You take the rules of the bubble the SMA first moved to...no matter which direction it takes after...
So that's it really...hope you could cope with my English...and post your thoughts about this system...:nerd:
