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Dear Traders,
this is the third article my series Bollinger Band Strategy for Trending Markets. In the first article (December 2014) I described how you get in and out of the trade when we are in a trending market. In the second article (January 2015) it was all about managing stops and take profits.
In this one, it will be all about how to determine a sideways market. This is the time frame, when we don’t trade at all, since we have no underlying trend. Don’t underestimate this – staying aside and waiting for good opportunities is a big part in successful trading.
Te keep things simple and concentrate on the active trades I showed that you are in a trending market when the middle line of the Bollinger Bands is consistently rising or falling. When this middle line – which is just a moving average – is flat or directionless, we are in a sideways market.
This all is completely true, but we can do better: In standard Bollinger Band settings the middle line is a exponential moving average. The parameters don’t matter that much, the key is to keep them on a fixed level to get the feeling how they move.
Back to the middle line - there are numerous ways to alter that line. Jforex is …
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Milian avatar
Milian 27 Feb.

хорошая работа!

verindur avatar
verindur 27 Feb.

Thank you : )))))

garisan avatar
garisan 27 Feb.

Interesting. Me myself like the wma because I don't like the line continuously touching the candles. Also another indication of a possible consolidation is when start to appear goups of very short candles side by side, when that happens you have to watch carefully. Waiting for 2nd part :)

fullmoon avatar
fullmoon 28 Feb.

Hi @garisan, short candles or long candles, like the four above in week 6. Reading Price Action is fun. When I trade my Bollinger Band strategy, I try to keep the Bands always on and only adjust the underlying MA. WMA works great with slightly adjusted parameters, then it's not that slow.

Annuuta avatar
Annuuta 28 Feb.

Well done!)

orto leave comments
Getting started trading!
* Really love a job, finding herself in him; in itself that should be developed to explore aspects that make this journey is actually a summary of the cases. Trading alone is not only a method of making money, even for investors who gain large sums of money, perhaps the second priority. After the performance a lot of preparation to pre-meditative relaxation phase of the psychological and physical effort that requires a complete challenge. Trading, in fact, "I live to make money" or "Live" is the answer to the question. Living loves and is practical, folding sell.
* Trading is a very serious person and made a journey in self-confidence you want. The ego is only as good as a place to develop self-confidence, self-confidence after the feeding of the ground difficult.
* Do yourself a favor!
* Leave of thought!
* Fundamental analysis, forget it!
* Focus on technical analysis. Because a method which contains all the parameters. If you apply a'' win'' for a full technical Analiz.
Here the emphasis to create your own system. And not to betray strategy created! ...
Trading also important to fundamental analysis. Know what day t…
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Comenium88 avatar

I just needed to take a look at the last chart. Seems like a worth-trying strategy. And yes, if it was better English explained, I'm sure more people would understand. But idea itself seems quite interesting. Good luck!

MrSami avatar
MrSami 4 Apr.

Best wishes

MrSami avatar
MrSami 7 Apr.

Although this kind of approaches always seem profitable, when you collect statistics between entry and exit points, the profit yielded may be too small for the time and patience spent..
Anyway, nice approach..

orto leave comments
Moving average is an important indicator. There are various type of moving average like simple moving average (SMA), Weighted Moving average (WMA), Exponential moving average (EMA) etc. Great details are available on the web regarding moving average. If we read about moving average, we find that they confirm trend as they are laggard indicator. Moving average can be used as support, resistance. We find how to calculate moving average, types of moving average and strategy to trade with moving average. We find numerous strategies on the net regarding use of moving average. However nothing is told actually why do they work? Why common N or time is equal to 10, 20, 50, 100 or 200? To find the answer, I searched for net but found nothing.  Most people will say that N is smoothing factor. You need to find proper N for your strategy. If so, why n= 10, 20, 50, 100 and 200 are very common worldwide? To answer the question, I made following hypothesis. Not sure, if it’s ok or there are some mistake or whether anybody have worked before. To my opinion, the answer lies in investment horizon and accounting cycle. Investors can be classified mainly short term traders, mid term traders and lon…
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crazytrader avatar

Nice... Keep it up

speculatorbd avatar

Thanks both farhana and crazy trader .

Omar_faruk avatar
Omar_faruk 29 Nov.

You are becoming researcher !!! great. carry on

tumiamar avatar
tumiamar 29 Nov.

good try

speculatorbd avatar

@ omar faruk.. i was always a so . thanks for compliments

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