Bollinger Band Squeeze

The indicator utilizes the bollinger band, keltner channels, and momentum.

In this thread I would like to give a review of my trades each night and give an outlook for the next day.

The indicators used was developed by John Carter at Tradethemarkets.com.

The dots at the bottom indicate whether or not the bollinger bands are in the keltner channels. If the bollinger band is inside the the dot will be red. This is a quiet period. If the bollinger band is outside the keltner channel then the dot will be blue. This is a period of volatility. The bars are above or below the dots display the momentum.

I use Ninjatrader for my charts. The indicator is available also for Metatrader. I mostly use a 512 tick chart, which is not available on Metatrader.

Here is a picture of a trade from yesterday. Notice how the dots turn from red to blue and the momentum is positive. Watch price go higher as momentum swings higher as well.

There was a quiet period prior to the move. Price broke resistance and the dots turned blue. This trade was helped by better than expected retail numbers.

The pair is consolidating and is in a quiet period. I do not know which way the price action will go. This pair has been consolidating since yesterday. I believe which ever way the move goes it will be a powerful one.

I use the 7, 21, 50, 100, and 200 ema. Also, I use a standard 12,26,9 MACD. This is a confirmation indicator. Any questions let me know. I do not have the indicators available for Ninjatrader, but this indicators are available for Meta Trader on forums in this site.

Here is a good example of a long quiet period. Once the indicator turns blue and momentum is heading south you want to initiate a sell at the 7 ema.

This pair is in a quiet period and has formed a box as labeled by numbers 1 and 2 for support and resistance respectively. I have set up two target points I would look for if price broke up or down. The red line would be a very modest target if price broke long. First, I want price to break the box and close above it. Then, I would be a buyer when price retraces a few pips above the box. I also want there to be a blue dot long squeeze. The aqua colored line would be a target if price broke lower. I think price would have an easier time going lower. There is less resistance going down.

There is nice consolidation and the pair is screaming for a good sized move.

greetings hockeyforex,

tq 4 sharing the system.
nice chart u got there.
can u post the mt4 indi for those settings?


regards

here is the squeeze for mt4, dunno if it will be an exact replacement for the one used in these ninja charts.

Hockey- Where did you obtain the bbs indicator for your Ninjatrader?

I made a post and asked for it and someone e mailed it to me

Here is a daily chart on AUDUSD. Check to see if the indicator provided is similar to the NT one.

Looking at the EURUSD daily chart you can see some points of support and resistance. The 100 ema is acting as support. If price can break and close below that level I would sell at a retracement to 100 ema. I would take profit at line 1. For a longer term short I would set a target at the 1.4330- 1.4360 level close to point 2. I like the short play because price is having a hard time closing above the the 50 and 61.8% retracement level (point 3). For me this is very bearish. Perhaps by Friday or next week this trade could become more evident.

There is a short play now, but I need more things to happen before I become more interested in this trade.

This is a very excellent example. First, I should point out the emas. The 7 is blue, 21 is pink, 50 is blue, 100 is red, 200 is purple.
I bought a red box around the long consolidation of price. Look how long the dots are red. Remember this is a quiet period. The Bollinger Bands are in the Keltner Channels. This consolidation lasted for almost 2 days.

At point 1 the pair closes outside of the box and a short squeeze is fired. Sell short when price retraces back to the former support line. The support and the 7 ema lined up perfectly. One could have held the trade till momentum started to fade at point 2. When momentum fades the next bar becomes smaller than the last and the bar is painted a darker color.

Entry would have been at the 1.9840 range and the sell could have been in the 1.9660 range. This trade could have landed a $180 profit in about 10 hours.

A trade like this does not always happen, so be advised.

When I use the 512 I am not looking for 100 pip moves. They do happen. I am looking for consistent 20-40 pip moves. There are more of these type of moves. This strategy can be used on larger time frames, which will equal more pips.

When you feel comfortable and have enough leverage you can use more lots. This could create more profit per pip or ruin your account. Remember, always use limit orders and place those stops!

This pair fired long this morning. If I was up I would have bought at point 1. The prior candle had a long squeeze and closed above the trend line. Point 1 retraced back to the trend line for a perfect entry. Some heat would have been taken at first.

I mentioned this chart earlier. I thought price had a easier track to go down. Price broke the box and shot up to the 200 ema. There was also a long signal. I would have entered a long position at the retracement to the 200.

If price at point one could close above the 61.8% Fib level at point 1 and be accompanied by a long signal I could see action going up to point 2. We need a close above the 61.8%. The rounding of the BBS is an excellent long signal. Momentum is rotating at a very good clip. If it works out there could be a 40- 50 pip move.

If price does not penetrate the 61.8% level Then a short might come into fruition.

I will post the outcome of this pair.

This pair is trading within an 80 point range. No break in sight.

This is a very cool index. This is an ETF that tracks being long the USD against the Euro, Yen, Pound, Canadian Dollar, Swedish Krona, and Swiss Franc. As indicated by the chart it has a long signal. Just something to think about and look at. The ticker symbol is UUP.

There is also a US dollar bearish index, which is UDN.