First Rule of BB.. Pay Attention to the 20 MA (Mid BB)
Although, this is one of the rule of my rules, I follow to Day trade. You need to combine it with your other rules..
So, whatever Timeframe you use, You need to initiate your trade only in the direction of 20 MA (Mid BB). When its Up, you need to Buy & when its Down, you need to Sell only. The Flat mid BB suggests to Buy/ Sell on the touch to the BB extremes.
I know, this is a Simple rule & people don't follow simple rules. Human mind believe complicated things more over simple ones and try to find out a way in which simple systems don't work. But Trading is a Probability Game. This simple rule will ensure increase in the Probability of success.
No Index/ Stock can stay much away from its 20 MA. It's also used by majority of traders and place their SL above/ below it. So consider another factor of Order flow above/ below it.
See the below trades of 22.11.2013 and look at the mid BB just before the entry. Include this simple rule in your Arsenal & feel the difference..
20131122154142.png)
Although, this is one of the rule of my rules, I follow to Day trade. You need to combine it with your other rules..
So, whatever Timeframe you use, You need to initiate your trade only in the direction of 20 MA (Mid BB). When its Up, you need to Buy & when its Down, you need to Sell only. The Flat mid BB suggests to Buy/ Sell on the touch to the BB extremes.
I know, this is a Simple rule & people don't follow simple rules. Human mind believe complicated things more over simple ones and try to find out a way in which simple systems don't work. But Trading is a Probability Game. This simple rule will ensure increase in the Probability of success.
No Index/ Stock can stay much away from its 20 MA. It's also used by majority of traders and place their SL above/ below it. So consider another factor of Order flow above/ below it.
See the below trades of 22.11.2013 and look at the mid BB just before the entry. Include this simple rule in your Arsenal & feel the difference..
20131122154142.png)
Thanks for the rules. Helps in understanding your trades better.
ReplyDeleteHi Deven, I chanced to see your blog when I was going through Chris article on Bollinger bands squeeze, I am mighty impressed with the quality of information you have put on Bollinger bands, it is a treasure to traders who are seeking genuine knowledge to improve the trades, the reason why I am able to appreciate your articles is that you echo the same thoughts which I found in a few high quality websites, such as the need to look at both bands, for eg, to post such quality information in such a silent way is really commendable and will be eagerly lapping all the information which is available on your blog, please continue to write as such invaluable piece of information can be shared only by a person who is genuine and is an expert on the subject, thanks Prakash
ReplyDeleteHi,
DeleteThanks for Visit & nice comment. Will surely try to post at regular frequencies.
Thanks,