Looking for Bollinger Band with .8 std dev. for MOBO | Forex Factory

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Attachments: Looking for Bollinger Band with .8 std dev. for MOBO
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Looking for Bollinger Band with .8 std dev. for MOBO

  • #1
  • First Post: Edited Nov 10, 2011 7:54am Nov 8, 2011 7:38am | Edited Nov 10, 2011 7:54am
I am looking for a Bollinger Band indicator that I can set to a .8 standard deviation.

There is a great stock trader/teacher named David Elliott a.k.a. FirstWave who likes the BBs. Unfortunately, he only trades futures on the Thinkorswim brokerage. (Google FirstWave and MOBO).

But, if you change the standard deviation to 0.8 you can really see the trend.

FirstWave calls them Momentum Bands, or MOBO for short, because they help visualize the momentum of the change. Candles outside of the MOBO bands means strong momentum.

I would like to apply MOBO to Forex but I need the ability to get the .8 standard deviation setting.

Any suggestions? It would look something like this.

MOBO strategies welcome.


Murph

Edit:

Solution: Use "bands indicator. Set the BandsPeriod to 14 and BandsDeviations to 0.8.
Attached Image (click to enlarge)
Click to Enlarge Name: MOBO.jpg Size: 155 KB
  • #2
  • Nov 8, 2011 10:26am Nov 8, 2011 10:26am
looks interesting...
period?
close or other?
  • #3
  • Edited 12:30pm Nov 8, 2011 10:58am | Edited 12:30pm
There are two indicators in MT4 you can use. Bands will allow you to enter fractional deviations like .8. I believe that otherwise the results are the same as the BB indicator, but I have not tried it in the last year. Worth checking into.
  • #4
  • Nov 10, 2011 7:28am Nov 10, 2011 7:28am
That worked great. I didn't know about the bands indicator in MT4.

Try putting it on a chart. Set the BandsPeriod to 14 and BandsDeviations to 0.8.

When the candles are out of the bands, you are in MOBO. The idea is to stay in the trade while you are outside of the MOBO bands.

When the bands squeeze down, it's time to get out.
  • #5
  • Nov 10, 2011 9:34am Nov 10, 2011 9:34am
Nice, only needs an EA....

Thanks and kind regards
  • #6
  • Nov 10, 2011 1:05pm Nov 10, 2011 1:05pm
Quoting Forex37
Nice, only needs an EA....

Thanks and kind regards
How about 3 months of documented (say MyFXBook) trades to prove the concept? Then maybe consider an EA.
  • #7
  • Nov 10, 2011 1:17pm Nov 10, 2011 1:17pm
Quoting CodeMeister
How about 3 months of documented (say MyFXBook) trades to prove the concept? Then maybe consider an EA.
Exactly. I don't think an EA would work very well, because it would be very hard to define the entries and exits. I look at as another tool to help you decide whether to stay in or exit.
  • #8
  • Edited 6:49am Nov 15, 2011 6:35am | Edited 6:49am
I have had success with Bands settings of 10,0.8 and 8,1.0. David Elliott used 10,0.8 on every time frame with stocks and futures but I don't know what the best settings are for forex trading.
When I went short,I entered when a candle closed below the lower band and I exited when a candle closed above the upper band.When I went long,I entered when a candlestick closed above the upper band and exited when price closed below the lower band.i.e.outside the MOBO band.
The exits were frustrating sometimes because price continued in the direction of my trade after I exited.
  • #9
  • Nov 15, 2011 9:40am Nov 15, 2011 9:40am
Thanks Flyer. Any screenshots of trades you might like to post?
  • #10
  • Nov 15, 2011 6:28pm Nov 15, 2011 6:28pm
In this screenshot, I entered when price broke below the band and below 53 ema. David Elliott said statistically a 50 period simple moving average breakout has had a 94 to 96% successful price movement when coupled with the MOBO band breakout.
Exiting at point A on a candle close back in the band yielded 162 pips profit.Exiting at point B on a candle close above the band yielded 220 pips but of course a lot of trades don't go this far.
Attached Image (click to enlarge)
Click to Enlarge Name: 10 0.8 short 9 nov eurusd 15min e.jpg Size: 58 KB
  • #11
  • Nov 15, 2011 6:46pm Nov 15, 2011 6:46pm
Very good illustration. Thanks!
  • #12
  • Nov 15, 2011 7:03pm Nov 15, 2011 7:03pm
On this 15 min AUDUSDchart,I set the Bands at 8 periods and std.deviation at 1.0.
For entries,I used a trend line break plus a Band breakout.
The first trade was short .The profit was 65 pips at point X(a close back inside the band) and 77 pips at point Y(a close above the band).
Attached Image (click to enlarge)
Click to Enlarge Name: audusd 15 minute 8 1.0 bands a.jpg Size: 86 KB
  • #13
  • Nov 15, 2011 8:00pm Nov 15, 2011 8:00pm
I'm going to watch a couple of David Elliott videos now to see if I can shed some light on how to exit a trade.
  • #14
  • Nov 15, 2011 8:52pm Nov 15, 2011 8:52pm
After watching the videos,I have decided to exit when a candlestick closes outside the band on the opposite side to my entry.
I will also watch candlestick patterns at support and resistance,Fibonacci levels and some of my best indicators.
This 1 hour chart shows some trades with a 10, 0.8 band setting.
Attached Image (click to enlarge)
Click to Enlarge Name: 1 hour eurusd x.jpg Size: 88 KB
  • #15
  • Nov 19, 2011 4:03am Nov 19, 2011 4:03am
hi flyer

i don't wish to sound a fancy indicator lover, as i have given up on all indicators except ma's.

just wanted to ask, if you can add colors to the band, for example green for going long & red for going short or other options just like image by OP in first post. it will enable trend view at slightest stare.



regards
.Hawk.
  • #16
  • Edited 5:42am Nov 19, 2011 5:14am | Edited 5:42am
.Hawk. I haven't been able to color the bands but I have added 2 signals:

1)A red arrow appears when price touches the bottom of the band and a green arrow appears touches the top of the band.I would have preferred a close outside the band but I can see that visually.
2)Red and green dots

Here is the indicator which allows the settings to be varied .The standard deviation can only be set to whole numbers such as 1 or 2.Sometimes I like the exits.Sometimes there is a better way to exit.i.e. a mechanical exit isn't anywhere near perfect.
Attached Image (click to enlarge)
Click to Enlarge Name: adding colors to the band ..jpg Size: 61 KB
Attached File(s)
File Type: mq4 BBANDS Custom3.mq4   6 KB | 2,648 downloads
File Type: ex4 BBANDS Custom3.ex4   7 KB | 1,952 downloads
  • #17
  • Nov 21, 2011 3:15pm Nov 21, 2011 3:15pm
MurphyMan,
somewhat like this ??
Attached Image (click to enlarge)
Click to Enlarge Name: sshot-1.png Size: 74 KB
  • #18
  • Edited 8:52pm Nov 29, 2011 8:35pm | Edited 8:52pm
Quoting .Hawk.
hi flyer

i don't wish to sound a fancy indicator lover, as i have given up on all indicators except ma's.

just wanted to ask, if you can add colors to the band, for example green for going long & red for going short or other options just like image by OP in first post. it will enable trend view at slightest stare.



regards
.Hawk.
Me too 20 SMA, 14 SMA and 56 LWMA with TMA targets. When 20 & 14 in same direction you hace a trend until it breaks the TMA. I also will not post any more systems too many critics browsing and loosing their money casue they are impatient. Watch Me get flamed for this post. Keep looking for the Holy Grail its there!! Yeah right. When all you really need is 51 percent success rate but because of greed we all want more and blow up accounts. I almost gave up until I quit reading forums and really getting deep with price action. Do larger trades for a set amount of pips then protect the profit with a fixed stop, reap the profit when the price starts clustering or candles peak.
Sorry for my sarcasim but if you trade real money you get this way and until you blow up a few accounts just shut up!!! Only a few of us last out 2 years so leave me and let me get you wised up.
  • #19
  • Nov 30, 2011 8:58am Nov 30, 2011 8:58am
Quoting mate41
MurphyMan,
somewhat like this ??
Nice job, Mate!
  • #20
  • Nov 30, 2011 9:01am Nov 30, 2011 9:01am
Quoting Flyer373
.Hawk. I haven't been able to color the bands but I have added 2 signals:

1)A red arrow appears when price touches the bottom of the band and a green arrow appears touches the top of the band.I would have preferred a close outside the band but I can see that visually.
2)Red and green dots

Here is the indicator which allows the settings to be varied .The standard deviation can only be set to whole numbers such as 1 or 2.Sometimes I like the exits.Sometimes there is a better way to exit.i.e. a mechanical exit isn't anywhere near perfect.
Thanks for that, Flyer!
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