Akuma99 Not So Squeezy Journal

Hey there Flyn, a very nice breakout indeed, like you I missed this one while I was in transit. This trade is a variation of my system that I have not included in this first edition of the manual, mainly because it is a higher risk trade that I don't feel comfortable recommending, however I will go through it here.

The 200SMA and 100SMA as noted in the manual both act as resistance as support for reversals of overbought and oversold conditions. However they can also "get in the way" of the bollinger bands, by this I mean they stop price meeting the extremes of the bollinger bands, and instead replace them. This usually only happens in a collapsing trend or ranging conditions. As you can see below, the USDCAD was in ranging conditions coming off a weak downtrend as shown by the compressed rainbow, this opens the way to trade both sides of the bollinger bands. In ranging conditions however, there is no excitement moving the price, so things like major moving averages can have the ability to stop or pause movements if they sneak in between the bollinger bands. In this case the 200SMA did just that, early you can see the 100SMA did the same.

http://img148.imageshack.us/img148/26/chart11ur.gif

This one would have taken some nimble fingers and confidence to grab, but the signals were there for advanced traders of this system. For CCI users, the 50CCI gave a zero line bounce also which would have got you in about half way through the move. In terms of targets, the 161.8 extension was blown away, the next target may well be the 261.8 extension around 1.1255 at some point (which isn't too far from previous resistance).

As a side note, this same trade on the 4H is below, notice the zero line cross on the 50CCI, and the extended blue zone that preceded this move.

http://img148.imageshack.us/img148/594/chart28yf.gif

I am looking at a second part to the manual with more advanced techniques such as this one in the near future. I hope this makes some sense.

Thanks Akuma....wow, what a quick reply!

I guess in my own bumbling way I'd more or less come to the same conclusion....but I didn't understand why it was risky...thanks for the clarification.

You're a legend man....

Well it is only riskier because the 200SMA and 100SMA doesn't always provide enough of a barrier, and so price sometimes push right through and use the lower bollinger band as its launching point. This is where the ability to read price action and candlesticks can help.

Glad it helped anyhow.

Ok I know I have posted in the journal for a while, but I couldn't resist posting what is a text book perfect scenario for the Not So Squeezy system today on the EUR/USD, I hope you caught it as I did:

http://img442.imageshack.us/img442/3555/eurusdsq7.gif

Everything is there, lower BB and 100SMA conjunction, active blue zone, developing uptrend as shown by the expanding rainbow ... lovely, best of luck to you all.

Thanks for the great work you have done here. This is exactly what I have been looking for. I know we are all very grateful and look forward to your continued postings. Thanks again.

buzz2002, did this link not work?

http://www.forexfactory.com/forexfor...&postcount=205

I couldn't download it, could it be problem with my member permission??
if so, could you email to me??
my address: [email protected]

Thanks

On its way ....

thanks

Lovely squeeze!

pls do continue to post ur trade journal! You have no idea how much impt it is for a newbie like me to be reminded again and again of the rational behind ur system. The important of bare bones TA. Lastly how inspirational it is to know someone can really earn an income using it and willing to share with us all.

Thanks again. Pls keep ur trades posting coming! i read it all and read it again and again to remind myself of the fundamentals.

cheers

Sorry I have been slack of late, ok here is a trade set-up I took last night on the sterling, ended up +101, which was much more than expected as it was more of a ranging trade with a collapsing/compressed rainbow, but hey I won't complain

http://img95.imageshack.us/img95/2171/gbpzk1.gif

So in this one we had a compressing rainbow, which gave me the green light to look for signals in both directions (ranging conditions), we got a nice extended blue zone that would have allowed a short trade firstly from the upper to the lower BB, I was not online however and missed that one, but I did take the long trade from the lower BB looking again for the upper BB, but obviously there was a news event (I don't watch news) that gave it extra oomph and took above and beyond that level.

I have been asked about targets, this is a textbook example of one of the suggestions in the manual, taking off half of the position at the upper BB, and letting the second half run aiming for a fibonacci extension level. You can see that price finished it's run right at the confluence of the 161.8 Fibonacci extension, and the 200SMA.

All in all a very good example of this system.

Nice trade Akuma99.

There was another very similar one just now on the EURUSD I guess you caught it. Rainbow kept folding and a bounce of the lower BB.

Three things I have trouble with are:

1) Timing the move - there's time again
2) Fakeouts.
3) Confidence in direction of the move - which comes back to 2.

I suppose this is the chart that minute looked at. I have the same problem with entry point, and which direction it would go when learning akuma's trading strategy.
For now i try to use classic woodies rules for entry and exit point. I haven't tested it thoroughly tho. Maybe it could help me to know what market are doing at that moment (?) Please correct me if im wrong, as I'm new to trading.
And thanks for your great manual akuma, it helps alot to understand how markets works.

http://img102.imageshack.us/img102/9...1608062oa5.gif

Akuma do you have a track record for your system I could view??

Head fakes are indeed a thing to watch for, especially at quiet times, which is why I like to take half a position off at the opposite bollinger band and lock in +1 as soon as that happens with the other half. That way if we do see a head fake, i.e. a move from one band to another than a the main reversal from there in the opposite direction, we have locked in a small profit and no harm is done, in fact if you are nimble enough you can gain both ways but that is only with a compressed rainbow that is letting you trade both sides. This is what happened in last nights EUR move (see below).

http://img93.imageshack.us/img93/988/eurdr6.gif

I didn't take the EURUSD trade, although it does not surprise me the set-up was there, im sure the USDCHF was showing the same set-up also.

Crestwind in terms of a track record, I do not have anything definitive apart from what is logged here. I trade several systems depending on the markets condition and my timeframe, so all the results basically blend in together so it would be of little use sorry.

Its cool. Thanks for your response.

Akuma99, thanks. Taking half profits makes good sense.

On your last trade the blue warning dots occur way before entry. There is a period of ranging. I've noticed this is quite common, especially when the market is hesitating about a direction.

This is what I am having trouble with. How do you know when to get in the trade or do you get in each of the range trades at the outer BBs?

Do you know what I mean?

Hi minute, yes I always try to enter as close to a bollinger band as possible, the only exception to this rule is sometimes if the 100SMA or 200SMA jumps in front and acts as the bollinger band, I explain this a little more in the manual. It is important, to keep your risk low, to enter at these extremes in my opinion.

I was slowly coming to the same conclusion, if it moves against you get stopped out but nice and tight. Thanks i've learnt something else again.

I can also see why you scale into positions as well.