Second Rule of BB.. Pay attention to Hammer/ Stars on BB
One of my simple rule to find out a reversal is to find a Hammer at Lower BB or a Shooting Star at Upper BB. But always remember, in all the cases, we let the mid BB flatten.
That means we don't take the first reversal of BB after any Range breakout. We trade 2nd/ 3rd reversal signal on Lower BB & 3rd reversal signal on upper BB. This is due to the fact that reversal from Uptrend generally takes time, so we generally take 3rd reversal sign. Better to miss a trade then to be in a Bad one.
See my below trade as an example on 11.11.2013. After range breakout, 1st & 2nd reversal candles left. Took 3rd reversal at the marked place..
20131111153904.png)
Reading BB is an art. Read it with Candlesticks but no need to remember the technical names of the candles. When we see a candle & tell to our self that people are buying/ selling or are in indecision, it's enough. We are trying to read the sentiments from candles.
Also, we need to wait for the second candle (one candle makes fool generally) & of course near to our DP.
One of my simple rule to find out a reversal is to find a Hammer at Lower BB or a Shooting Star at Upper BB. But always remember, in all the cases, we let the mid BB flatten.
That means we don't take the first reversal of BB after any Range breakout. We trade 2nd/ 3rd reversal signal on Lower BB & 3rd reversal signal on upper BB. This is due to the fact that reversal from Uptrend generally takes time, so we generally take 3rd reversal sign. Better to miss a trade then to be in a Bad one.
See my below trade as an example on 11.11.2013. After range breakout, 1st & 2nd reversal candles left. Took 3rd reversal at the marked place..
20131111153904.png)
Reading BB is an art. Read it with Candlesticks but no need to remember the technical names of the candles. When we see a candle & tell to our self that people are buying/ selling or are in indecision, it's enough. We are trying to read the sentiments from candles.
Also, we need to wait for the second candle (one candle makes fool generally) & of course near to our DP.
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