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Predict breakouts & trend reversals using macd/bb%

  • #1
  • First Post: Edited Aug 21, 2019 11:46am Oct 27, 2016 4:58am | Edited Aug 21, 2019 11:46am
Can't seem to find this anywhere on the interweb so thought I'd create a post here to explain my strategy.
You can use pretty much any of the lower indicators but I find the Stochastic, BB% and / macD works the best.
We all know the use of these indicators to find divergence but the cross over pivots are almost never the true reversal points.
The true reversals / breakouts can be determined by drawing in a simple trend line.
Rules.
Previous Divergence Projects the next trend break / reversal
1. to 2. = Divergence
2. to 3. No divergence
/= Trend break on the volume indicator BEFORE it does on a price chart.
Enter on the break of structure
-----------------------------
When using the BB% indicator the same rules apply as if you are using a simple Bollinger Band.
Rules.
1/ Mark the highs (or lows) Outside of the bolinger band then the Inside. Usually the following inside high is higher than the outside high which
relative to the bollinger band indicates a reversal. Remove the bollinger bands this is divergence. The BB% indicator mirrors the Bollinger band.
I can better explain this with pictures.
Hope this helps a few peeps
enjoy
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  • #2
  • Oct 27, 2016 10:08am Oct 27, 2016 10:08am
Looks interesting....who doesn t want it? thank you ->subscribed!
Vucking good EA coder... https://t.ly/AZjRM
  • #3
  • Oct 27, 2016 7:37pm Oct 27, 2016 7:37pm
Why don't you try CCI instead of MACD? Woodie's method for example.... Woodie's is proven technique.
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #4
  • Oct 27, 2016 10:28pm Oct 27, 2016 10:28pm
Quoting heispark
Why don't you try CCI instead of MACD? Woodie's method for example.... Woodie's is proven technique.
cci is identical to BB% & rsi they're pretty much all the same, I trade Bollinger bands, BB% is a mirror image allowing me to switch out the Bollinger bands and have a clean chart. I'd say Bollinger bands are a proven method when used correctly. I know nothing of cci strategy ?
Combine this with structured analysis it's a pretty solid strategy an easy to identify.
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  • #5
  • Oct 27, 2016 10:57pm Oct 27, 2016 10:57pm
Finally someone has posted a strategy that involves the use of the BB%.

I love this indi is one of the few of the many out there that can actually pick out reversals with amazing accuracy.
  • #6
  • Oct 27, 2016 11:41pm Oct 27, 2016 11:41pm
Hi vdubus!
Can you please share your's BB% indi?
Best regards
  • #7
  • Oct 28, 2016 12:36am Oct 28, 2016 12:36am
Quoting todamoon
Hi vdubus! Can you please share your's BB% indi? Best regards
I found the coding for this one, mt4 I modified it slightly incorporating my own variable settings.
Tradingview charts have a default BB% indicator, I also created my own version of it which you can find under my profile - scripts

https://uk.tradingview.com/script/LK...B-REVERSAL-v4/
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Attached File(s)
File Type: mq4 Vdub_BB_.mq4   2 KB | 4,351 downloads
  • #8
  • Oct 28, 2016 8:39am Oct 28, 2016 8:39am
Very interesting Vdubus..
Subscribed...
Thx.

Rob
  • #9
  • Oct 28, 2016 5:47pm Oct 28, 2016 5:47pm
Hey vdubus!
Thank u for this thread.

1st image - this worked theory well!
But 2st image - not worked, maybe i did it's not right?)
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  • #10
  • Oct 29, 2016 12:15am Oct 29, 2016 12:15am
Quoting Fawkes7k
Hey vdubus! Thank u for this thread. 1st image - this worked theory well! But 2st image - not worked, maybe i did it's not right?) {image} {image}
i dont see any divergence on your charts?as i understood you must take a position after trend line brake if there was a divergence first
  • #11
  • Oct 29, 2016 1:07am Oct 29, 2016 1:07am
Hi vdubus
What TF do you use ? only H4 ?
  • #12
  • Oct 30, 2016 7:02pm Oct 30, 2016 7:02pm
Quoting madscalp
Hi vdubus What TF do you use ? only H4 ?
No I don't restrict myself to 4H but I find higher time frames easier to break down when using BB%
  • #13
  • Oct 30, 2016 7:07pm Oct 30, 2016 7:07pm
Your very first chart - that first LH is actually a HH. How can it be a lower high if price is higher than the previous higher high?
  • #14
  • Oct 30, 2016 9:00pm Oct 30, 2016 9:00pm
On daily chart I use
wma(4)
ema(13)
ma(50)

and average volume 25 day line. watch the volume on up days vs the volume on down days. Take a look at BAC chart. The ema(13) is the swing trade average and wma(4) as points to get in one the 1st day up.

All indicator's do just make a lot on noise. IMHO.
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  • #15
  • Edited 2:49am Oct 31, 2016 2:39am | Edited 2:49am
Quoting enochben
Your very first chart - that first LH is actually a HH. How can it be a lower high if price is higher than the previous higher high?
Relative to the Bollinger band it's a LH - Last picture
Outside = High / Inside = Low
Outside - Inside = Reversal

Divergence
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  • #16
  • Jan 27, 2017 11:13am Jan 27, 2017 11:13am
Awesome @vdubus, so glad you started this thread.

Looking at the EURUSD 4H (attached below), are we due for a reversal?
I noticed your BB% length is 21 vs the default 20. Does this change make much of a difference in results?
Last question, do you enter at the immediate price action trend break or wait for a candle to close past the break?
Thanks!
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  • #17
  • Jan 30, 2017 8:07am Jan 30, 2017 8:07am
Quoting buildingblox
Awesome @vdubus, so glad you started this thread. Looking at the EURUSD 4H (attached below), are we due for a reversal? I noticed your BB% length is 21 vs the default 20. Does this change make much of a difference in results? Last question, do you enter at the immediate price action trend break or wait for a candle to close past the break? Thanks! {image}
Looks like my question was answered, though I missed an entry point
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  • #18
  • Feb 4, 2017 5:30pm Feb 4, 2017 5:30pm
This is about the sharpest indicator for divergence I've seen in a long while.
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Let it turn and find your entry.
  • #19
  • Feb 6, 2017 2:16am Feb 6, 2017 2:16am
Quoting buildingblox
{quote} Looks like my question was answered, though I missed an entry point {image}
I like to use fib numbers 1, 2, 3, 5, 8, 13, 21, 34, and so forth. It make no difference to the strategy
  • #20
  • Feb 6, 2017 2:20am Feb 6, 2017 2:20am
Quoting Intrepidpips
This is about the sharpest indicator for divergence I've seen in a long while. {image} {image}
Nice. I also use an identical strategy for renko
& here you will find the holy Grail to my strategy -
Divergence predicts the next trend reversal !
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