Akuma99 Not So Squeezy Journal

Hi Dave,

In terms of fibonacci, you want to measure it off a corrective swing into the main move, as is shown in the past few charts. The most common levels are 1.272, 1.618, 2.000, 2.618 ... there are others beyond that but are usually well beyond what I use them for.

The blue zone is a measure of volatility, in terms of indicators, the blue areas are where the Bollinger bands "squeeze" inside of the Keltner channels, the manual has an instance of this in the earlier pages if you want to see a visual.

Hope this helps

Rather than simply post chart after chart of trade set-ups, I am trying to post those that give us a little extra knowledge other than what is in the manual. Here is a recent trade set-up on the USDJPY that started late Thursday and went all the way through to the close of the week for around 100 pips.

The reason I chose this is the extended blue zone, note how long the blue zone lasted, yet there were few entries available as the price hovered near the top of the BB despite the rainbow showing a weak uptrend. Finally price did move to the lower BB in what is a classic "head fake" move, but as we new we were only looking for longs, we should not have been fooled, instead it was a perfect time for entry at the lower BB and right above the 100SMA.

When we see such a long blue zone, be watchful to see if there is some power in the initial move, and if so, lock in your +1 and try to ride it with both lots to a Fibonacci Extension, in this case it got all the way to the 261.8 FE. Here is the chart:

http://img242.imageshack.us/img242/8828/usdjpygw8.gif

Yes I see that. I also noticed that the 200 sma is close as well providing additional support

Sometimes knowing when not to trade is more important knowing when to trade. Here is an example of a time with this system when it was best to wait and see, rather than try to pre-empt the move, this does not happen often, but it can happen.

In the below chart, you can see we have a blue zone in the area I have marked with the rounded rectangle, however notice how tight the bollinger bands are. Normally with a compressed rainbow we might look to play both sides of the bollinger bands, but clearly there is not room to do that. So which way do we go? .. the answer ... we don't ... as it would be a 50/50 guess that is no better than gambling, we want the odds stacked in our favour.

Also note the 100SMA and 200SMA, how they are on either side of the current price when the signal is given, support and resistance, so there is no real indication of a directional bias. Combine that with choppy momentum and all in all it is best to stand aside and let price decided which way it is going. Chances are with such a tight squeeze of the bands, it was going a fair way (thing of when you squeeze a toothpaste tube hard and fast, how quickly that paste spurts out).

http://img246.imageshack.us/img246/3323/eurusdlu5.gif

according to bolli technique next target is the middle bolli band(21 ma) or 20 ma, befor it goes back down, if it goes back down.

Dave

Hi Akuma. I was wondering if you could share some insights into your workflow. For example, how often do you scan your charts, how many pairs, etc.

Also, to trade on 4H charts, would you make any changes to the base settings.

Regards,

Hi Michael, a good question. Firstly I work of 1H charts, I will have a look at the markets on the Asian open for any trades left open through mid to late US sessions or before. I will close trades at this time, but very rarely will I open one unless it is long term swing trade. Most of my trading happens mid to late EUR and early to mid US sessions, more out of lifestyle choice than anything, it is because of this you will see the odd post where I have missed trades through early europe where there tends to be a few set-ups.

Once the set-up is found, I prefer to watch the market long enough to place the order "at market" rather than a limit order, as we all know the markets can be unpredictable, and hence can blow straight through a limit order and its associated stop in a matter of minutes. Once that is done, I do my best to walk away from the trades, this system makes that part harder if you are going for a small move to the other side of the BB, but I find it works ok, it also stops me over-trading and/or panic trading with early exits etc.

Using the 4H charts opposed to 1H charts shouldn't require any different settings, it seems to work just as well, if not a few less signals.

Hello Akuma,
I paste the chart. Please clearify it. And if the RMMA cannot clearify signal then what i do to seeing the squeez bar. it will also explain. and also explain the position is taken on the first blue squeez bar or first bar is waiting bar. Thanks

Hi there, a compressed rainbow (RMMA), is a sign of ranging conditions, i.e. where price is going to bounce around not really going anywhere. In these conditions you can do one of two things, for the conservative, it is the time to sit back and watch and stay out of the markets, or for the more aggressive, it is a time where you can play both sides of the Bollinger Bands, i.e. Long at the lower BB, and Short at the upper BB.

Playing both sides can be risky, and you need to be quick, decisive and strong with your entry, exit and risk management as price will quite often spike to the band before quickly rebounding within the same time period, as is shown in the current EURUSD chart you uploaded. Something is brewing with the EUR ... an extended blue zone like we are in warns of a big move approaching, it can also be a time for head-fakes so be careful.

http://img89.imageshack.us/img89/9545/eurusdqx1.gif

Hello,
I paste the chart Jpy. It created signal before or near 100 SMA. Market has lower BB 117.00. I want to question that it is the best time to buy now or wait to touch lower BB. Please clearify it . How can i Clear it that signal is correct or wrong. but the yen is strong uptren Rainbow. Thanks

A strict follower of this method will only enter a long trade at the lower BB, no-where else, an advanced user, may enter at the 100SMA if it has slipped in the way of the BB, but some candlestick reading skills would help with that.

Here is the realtime USDJPY chart you refer to, right on the entry point as I write this.

http://img166.imageshack.us/img166/8193/usdjpyof4.gif

Hi Akuma,

I am wondering if its possible that when u can find the time, may be u can share with us ur losing trades.


Do keep posting! Really enjoy it.

Hello Akuma,
I see your chart that showing squeez in yen case almost 6 blue warning bar. But in my chart have 2 gap 2 bars. If you possible then please send me the Bollinger Squeez Basic indicator. I am thankful. I am waiting for your reply. I have download bollinger squeez from your site beginnertraders.forum website but that bollingersqueez basic is not working. Please send me that basic version that is working properly. Again Thanks
Arshad Warsi

The basic version is included in the zip file in the manual thread:

http://www.forexfactory.com/forexfor...ead.php?t=6233

ellipses, sure I posted some not too long ago, but Ill throw a few more up some time today

Hi Akuma,

I just wanted to put in my 2 cents and tell you that of the 2 months or so that I've been reading the forex forums and following various systems, etc., yours absolutely is one of the most simplistic, easy to understand systems I have seen. I fully plan to start following this in my demo trading asap. I also really appreciate the detail you've put forward in your charts and explanations - this is helpful beyond measure.

That being said, I too would also like to see more failure charts. I've found as I've worked on other systems that its the failures that I've learned more from than the successes.

Thanks again for all the work.

Jason

Well thanks for the kind words Jason, and I agree about learning more about failures than anything else. What I will do is get together a bunch of examples and lump them into a pdf and post it over the weekend, I hope this will suffice

And it got there!

In case you are wondering what minute is talking about, here is the chart with the last posts entry marked, and the exit point ...

http://img175.imageshack.us/img175/7010/usdjpyco4.gif

Hello Akuma,
I paste the Yen Chart again. and same indicator but it shows the difference Squeez Bollinger Warning with your charts that you paste on the post. If you use the other indicator or taking change in the indicator code. Pls Give the modified Indicator. I am waiting for your reply. Thanks for your anticipation.
Arshad Warsi

That is the only Basic version I ever did, so it is the same, looking closely at your charts, I think it is to do with the different data feeds, there are some slight differences in the candle construction, and notic the difference between yours and mine 100SMA position at the entry point .. slightly different ... I would say the data feeds differed enough for the signals to differ.