Akuma99 Not So Squeezy Journal

Hey akuma. Are you live trading? And what broker do you use?

Yes ch33z3 I am live trading this system, have been for a while now. I hold accounts with Oanda, Alpari (those are the charts you see), and FXCM to spread the funds around. Oanda and Alpari are my main accounts these days, I am fading out FXCM at the moment.

Thx. good info. I'm planning on starting an account with forex.com. Account setup is almost instant with a credit card.

Just did some tweaking on my version of the squeeze indicator over the weekend. The attached version now has three trigger types:

1. Stochastic
2. CCI
3. RSI

The periods can be changed for all of these of course. I have modified how the Stochastic and RSI is displayed, making them oscilate between 50 and -50, hence keeping the 0 middle line, just makes more sense to my eye that's all.

NZD/USD trade setting up as I write this ... more to come soon.

http://img312.imageshack.us/img312/983/nzdusd5jz.gif

Hi Akuma, thanks for the new version of the squeeze indicator. I just figured out that by changing the type we can use either of the three triggers.

I have a question, do you have any preferences among the 3 triggers? How do you decide which one to use?

By the way, I just noticed a CCI bounce from the 0 line which can be considered as a long signal, also the NZD/USD is nearly the lower bollinger band and I think this means a nice reward/risk ratio. Therefore I longed the NZD/USD. Let's see how it goes.

Well spotted rongshihong, I am with you on that same long trigger off the CCI, ill close half my position at the upper bb most likely and move the other half to break even and see where it take us.

My preference is definitely for the CCI as a trigger, I have added the ability to use the stoch or RSI just to help people who like looking for divergence or for overbought, orversold conditions.

TRADE TYPE: TRENDING

May 08 | LONG | NZD/USD @ 0.6408 | SL: 0.6389 | TP: 0.6447

http://img223.imageshack.us/img223/3241/trade87sv.gif

A nice zero bounce on the CCI in a blue zone, I waited to see it above the 50SMA this time, as was worried it would prove to be resistance.

Trend
Still in a medium up-trend, weakening very slightly as no expansion in the rainbow seen, but enough there to stay looking for longs.

Momentum
Weakening bearish momentum on the 1H, while the 4H sits neutral, and the dailies still has some bullish momentum, although weakening.

Trigger
Zero line bounce on the 50CCI got me into this trade after a close was seen above the 50SMA.

Resistance/Support
Cleared the 50SMA, so looking at the upper bollinger band as resistance for now where Ill close half my position.

Stoploss/Exit Strategy
Stop loss is below the round number support and 78.6 retracement of recent upswing, while I'll target the top BB for 1 lot, and move the stop to breakeven on the second going for 161.8 extension.

Pretty standard set-up for my system, we will see if there is enough juice left to get there. Another sign that momentum is falling is the triangle formation forming from the last few peaks and valleys. That may be another trade to look for in coming days.

Happy trading!

Bollinger Squeeze v7 only can be used on H1 chart?

No not at all, you can use any of the bollinger squeeze versions on any timeframe, I just like trading off a 1H chart, I know some use it as low as 15M charts.

Akuma....would you be kind enough to give me a quick lesson in how you use this indicator, or point me somewhere that i can find an explanantion/

Here is why I have added the RSI and Stoch as an option for the indicator, another method used with the squeeze is to look for divergence. For those that don't know, divergence is when price is making higher peaks, yet an momentum indicator is making lower peaks (or vise versa). It is a sign for some that a reversal is on its way. To show you an example, here is the current GBP/JPY chart as I write this with a classic example:

http://img240.imageshack.us/img240/9...ergence9eq.gif

Flyn, I use the rainbow indicator to indicate to me the strength of the current trend, or whether a trend is actually in place. For example, in the previous posts' chart, you can see before the recent sharp reversal that the rainbow was sloping up and spreading out. To me, if I see a spread out rainbow, it tells me that the trend is in place and strong and to look for triggers in its direction.

If you see periods where all the moving averages are grouped tightly and oscilating up and down, I read that as the market being in ranging conditions and to adjust my trading approach accordingly.

It is not a 100% foolproof system (as the above reversal shows), but it keeps you on the right side of trades quite often.

Well things were looking good for this trade, with things moving in my favour early on, but the declining momentum that was worrying me that I mentioned when I placed the trade ultimate got this one before it made the upper bollinger band. I managed to tighted my stop as it approached the band, so only a small loss on this one. So close yet so far. Looks like the blue zone was actually warning of the sharp breakout of the triangle I also mentioned at trade placement.

Unfortunately I was offline and not around to catch it or close my long trade early, but hey we have to live our "other" life at times too Here's the chart in case you want to see it:

http://img336.imageshack.us/img336/8568/trade8b6ns.gif

TRADE RESULT: -18

Hi Akuma99,

I notice in the top left corner of your charts is a little time left on candle indicator. Where can I get that.

Cheers
Blair

Here it is .. hope it helps

Do I need to adjust any setting if using different timeframe other than H1 or I can just use default setting?

Thanks.

No yhboey, I have found the settings to be pretty much standard across all timeframes, of course feel free to fiddle with them and see if you can improve things.

TRADE TYPE: RANGING

May 09 | SHORT | GBP/JPY @ 207.59 | SL: 208.11 | TP: 206.48

http://img204.imageshack.us/img204/3876/trade111sv.gif

I woke up this morning to one of my favourits set-ups on the GBP/JPY. We are right at the beginning of a blue zone signal, where normally I would wait for a CCI trigger, however this is an exception. You can see price has blow through the rainbow over the last couple of days, causing it to "fold over", it made it through the 200SMA also, but is now returning to it to give it another test from below.

I like this trade because, we are now either in ranging conditions, or the start of a downtrend, either way, we are in a good position to go short. If it is ranging then we are up near the upper Bollinger Band with a signal, you can see I have a limit order at the upper band in case it gets that far (I dont think it will), and I have opened a short position now at the 200SMA as it should prove too tough to get through.

My target is for the 161.8 extension, but I will watch things closely at the lower Bollinger band if it gets there of course.

Trend
Rainbow has folded over, indicating either upcoming ranging conditions, or perhaps the start of a downtrend. Either way, price at the upper band is a sign to go short.

Momentum
Plenty of 4H bearish momentum left, and the daily bullish momentum is fading fast as would be expected with the strong move shown over the last couple of days. 1H momentum remains neutral as is normal for blue zone trades.

Trigger
I have traded this without a CCI trigger, relying on the strength of the upper band with 200SMA. I suspect if the trade goes my way, we will see a zero line bounce shortly.

Resistance/Support
Its all about the 200SMA in terms of resistance, that coupled with the Bollinger band and a folded rainbow should see another move up capped strongly.

Stoploss/Exit Strategy
No real clear place for the stop loss in terms of previous resistance, or even 78.6 fibonacci thanks to the straight line drop over the last few days. Have placed the stop above the upper bollinger band/200SMA, as that is what I am counting on to hold. My target is the the 161.8 extension of the small corrective upswing into this trade, but Ill assess things at the bottom BB.

Happy trading!

Well things are going ok on the above trade ... more on that later ... one big aim while developing this method was to make sure it would apply to different markets and instruments as well as Forex. That is why I stay away to fx specific strategies such as "Big Ben" or those that rely on fx market change overs etc. as I worry, when I want to diversify to other instruments, I have in essence not learnt to trade but instead only learnt to trade forex.

This morning, I downloaded the strategybuilder version of MT4 as they make available some other vehicles such as the SP500, QQQ (Nasdaq 100), metals, futures and others and applied my system to those to see how it performed. Pleasingly, the results did not differ from the fx charts too much, with one exception, some of the markets tend not to trend as much as the fx markets do, so fewer trending trades are generated, instead my ranging technique became more important (which is slightly less reliable), here are some examples:

GOLD
http://img155.imageshack.us/img155/5817/gold1fl.gif

QQQ
http://img297.imageshack.us/img297/263/qqq9wl.gif

SP500
http://img248.imageshack.us/img248/3982/sp5008rd.gif

You can see the benefit of recognizing trending and ranging conditions, so are you learning to trade forex? ... or learning to trade?

Happy trading!

Well this one worked out nicely, not a pip of heat taken, price fell right on the 200SMA in the blue zone, before bouncing at the lower BB. I waited to seewhat would happen at that point, before closing after it was clear a bounce was on. Gave up some pips, but still finished well ahead.

Note the blue zone remains, it appears we are ranging today as indicated by the rainbow, could have another opportunity to short at the upper BB.

http://img414.imageshack.us/img414/7316/trade11b7nq.gif

TRADE RESULT: +49