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Rolling and Jamming with Bollinger's Band (5 mins)

A strategy is as good as the strategist.

Make sure your BB setting is this. Which i believe is the default settings. This is the crux of this
strategy.

Primarily, we are trading momentary bounce, pull back or full reversal. We are making educated
guess that the next 5 min candle is going to go against the current candle. Alert being the
current candle while Entry being the next 5 min candle. This setup is essentially what we are
seeking. This scenario being the CALL.

And this setup is for PUT scenario.

Now, this is the Cardinal Rule that these 2 scenario setups has in common and is VITAL.
Both the ALERT candles, CLOSED outside of the BB.

Specifically, they both OPENED while inside the BB and CLOSED outside and CLEARED of the BB.

The BB lines has to be completely 100% cleared from the closed candle.
That is the closed end of the candle has to be away and cleared from the BB lines. And not touching the BB
lines.

Proximity is not a concern here but the CARDINAL Rule is the edge of the closed candle has to be cleared
from the BB lines, that is all.

Strategy or System alone does not give u winners.


Market gives u winners when u are properly equipped and prepared.
This strategy will assist u in the equipped department.
The following HARD and SOFT rules will hopefully make u prepared, more or less.

There is no bad strategy only bad strategist.

This is a trade i made and won 30 mins ago. i will use this chart setup for a simple illustration on the backbone
of this strategy.

As i mentioned earlier, the CARDINAL RULE, is to have the alert candle closed outside of the BB, before any
entry can be made.

So how do we get there ?


The indicators that i used, does not require u to be seated throughout your trading session. There are 2 important
indicators alerts that make things much easier. BolliToucher and VCustom3.

Now for a candle to fulfill our CARDINAL RULE and be eligible for an entry, the candle must of course
venture out of the BB. And since we are trading for momentary pull backs, full reversal and bounce, we must
ensure the pairs are in OB/OS.

As long as a candle venture out of the BB within the time frame of the candle (in this case 5
mins), BolliToucher will sound off. I will only scan pairs for probable setups when this alert sounds off.

Then the job of the VCustom3 is to sound off OB/OS conditions. So in a perfect scenario,
the BolliToucher sound off followed by VCustom3 , then its time to sit up and get your checklist for entry
ready.

For those who are using this strategy for the first time, i would suggest the moment the BolliToucher sounds
off, start scanning for probable setups.

this is the exact chart setting as above but in MT4.


if u look at the VC window, u will see the trend strong and the Alert #1 candle can only punch just above the 8.0
mark in VC.

I believe there is more momentum to it. So i waited for another candle to open.
And once the second candle opened it punched higher than the first candle in the VC window. Punching in at
8.8 mark.
Notice the length of the candle in VC window, it is short.
Also STC just crossed over the OB setting. Now, that is an entry with strength and better odds.

That's a day work.


i am not showing off in any way but to showcase the confidence i have in this strategy. I am trading live.
Also to show u that it can be done. I have not explored if it works for all fx pairs but 4 pairs is the max for me.
U also have to consider the amount of alerts sounding off. So u have to find that balance. But 4 is max for me.
I monitor EU, AU, GU and UJ. No particular reason as i have been trading them for a while.

today was 6/7 ITM (85%)

The entry which was a lost was the classic case of entering at the Alert #1 where i should have waited for Alert
#2 for more strength and better odds of winning. Patience, Discipline, Understanding and Trading your plan.
Well, I guess a few points are very clear, the BB break is just an alert, that makes sense.
Secondly looking at the screenshot example with VC which I don't use but you can compare it to
another stoch like oscillator, you see the level at the very far left compared to the entry, you'lll
see clear divergence. Then also look at pinbars at the very left side, fight was going on and there
was a clear winner, resistance becomes support...

Man i feel like the downer guy here. All my post seem to be negative. All them candles closing outside the
Boilinger bands is called a strong trend. Price can sit in overbought for a long time.

IN FACT when you see price on Stochastic go up into OB area, take a call. Walter Peters (naked forex) calls this
the Stochastic Pop. It just means that price keeps going up. The way we've been taught is to trade the cross
down back under OB...but if that worked we would all be rich.

The shaft cycle has no place in binary options. I've spend (and a few others back in the day) a lot of time using
it with other indys. Its just way to slow. even if you speed it up, its still to far behind price. We don't need shaft
to tell us price is OB or OS that is obvious on the chart. I just found it to slow coming out of these areas. The
moves were done by then. But it sure looks pretty.

Better off with vc and say macd cross.


I hope something comes out of your trials. Other wise this thread falls to the bottome of the bucket.
Waterfall. Dont trade during waterfall and that was a 9 candle waterfall. Also try not to take trade when multipel
candle close outside bb. Best is to taken when bb is narrow and a candle breaks it with vc and stc confirmation

Just won that no news so dunno why the big candle. will be taking every single trade according to
rules

Won that too. Was a 1 pip win according to broker charts. There was four consecutive green
candles but the support looked strong as it stopped a trend b4.At the same time lost aud/usd and
this was during eur 3 and 2 bull news. And i think news did effect it. I will avoid all news even 1
bull news from now on although its so tempting to trade. The score is 2-1 but i am going to start
it again. Also i notice the first valid trade which comes after the stc flips from ob to os or from os
to ob it is likely a good trade

These are what i am going to follow.


1. Normal BB/VC/STC rules
2. Avoid strong trends
3. Avoid continuous break of BB
4. Avoid Multiple VC ob/os
5. Avoid waterfall(4-5 Candles if its 4 candles i look for good s/r)
6. S/R as final confirmation
7. No news

This trade was a no-brainer. In fact if i were attentive, i would have entered another PUT after i won my trade.

And again i missed another good setup as shown in the yellow box.
The setup in the box is a little tricky but manageable if u follow the rules with some understanding.
If u refer to the MT4 settings and template u will find that the first candle in the box would have satisfy all the
conditions.

It really looked like a good setup. And if u have entered at the next candle u have a chance of winning it as the
close was tight.

But if u refer back to the MT4 template u will find a green dotted line just above the first green candle. That is
the round number level.

Personally i respect the RN level, and if i were not away from my desk. I would wait for another candle which
is the second green candle in the yellow to close first. Then check if all the conditions are met. If they are met, i
go for it.

I would go for it because i want to stack as much odds in my favour as possible. And that RN level is an icing
on this cake.
Just look at the PA and u will understand.

Let's focus on the "V" shape formation of the VC candles at the VC window.
Starting from the left where the first VC was at the highest, thats where the long candle was, and just broke the
channel and BB.
As the value of the VC dropped, the subsequent candles didnt bounce off but hovered at that level.
Then the VC picked up again forming the second half of a "V" shape.
This time at your #1 Alert candle, the VC just punched through VC 8.
With the first half of the "V" shape where VC first peaked and dropped followed by the candles not dropping at
all, we know the market is just taking a short break before continue to trend.
I would have waited and so should u. Take the cue from the VC and STC.
As the VC changed from red-tip blue, and then again red-tip blue and finally a blue VC candle, where your
entry was.
Take a PUT after the close of the candle where u had made a PUT.
U are just one candle early.

hey Tommbstone !

You are most welcome here. And no u are not a downer. But it is good to have such perceived "negative" post so
that it can dilute the Kool-Aid we have been partying with here

Thanks for taking the time to read the thread and also share your views. i take that any time of the day. being a
newbie myself i am not able to discern good and bad moves for the market trades. so i rely solely on the
community's feedback and my own lessons learnt.

i understand your concern and thanks. If anyone would to just use this strategy without understanding or
thinking it is an automated decision-making system, yes they will fail just like what u have pointed out.

Take me for instance. i trade live.


And all i want is to make some on a good day and lose a little on a bad day.
So besides using this strategy, i also run my own risk management on a tight leash.

for every entry decision i make, i back it up with as many ITM probabilities as possible.
At the same time, i try to reduce the amount of variables when i trade. For example i dont trade at certain
windows, i respect huge candles, i respect candle bodies with wick and so on.

All these are personal trading traits which i believe all traders will hone over time. And with these traits, they
will also apply it with any strategy they are using. Which is what i am doing.

I am still at the very initial stage of posting in this thread. and to list out all these 'traits' will take some time.
and please continue to share your views here.

These are what i am going to follow.


1. Normal BB/VC/STC rules
(It is a good start. When u know how they work, u can start tweaking their levels to your own style)
2. Avoid strong trends
(We can check mtf to confirm and act accordingly. Not all trends are against us. Below the V shaped VC
is a good case during trend)
3. Avoid continuous break of BB
(If this is a continuous break but hugging along BB lines, i would stay with it. Some of my best trades
were from this scenario)
4. Avoid Multiple VC ob/os
(Make sure to confirm with the movement of the pairs)
5. Avoid waterfall(4-5 Candles if its 4 candles i look for good s/r)
(as per answer at No. 2)
6. S/R as final confirmation
(always)
7. No news
( i personally dont trade 15 mins before and after)

this was a bonus. just before i decided to switch off my pc, the alert sounded off.
took a look, its good.
same scenario as my previous chart post. but STC was already in place while VC was at 8 and not breaking it.
Everything else was in place plus 50 SMA again.
Good day no complaints
i too took that but wasnt VC at 7.3 but the s/r was really strong and price stopped right at it. And
as my master HMR aka Simeon said when price stops right at s/r its the time u got to be rdy. Also

said by hmr aka simeon when previous support is broken and is tested again as a resistance for
the first time after the break there are higher odds of winning. Perfect trade

first trade of the day. it was an easy one.


Alert #1 sounded as it touched but didnt close beyond the BB.
Alert #2 met all criteria. i didnt enter because it was very near to the nearest RN.
Final Alert met all criteria plus the bonus of busting and pull backed from the RN.
Entered and won at the open of the next candle.

2nd trade was also an easy one.


Alert #1 broke out of channel. VC was strong at about 10.3 all criteria was met except STC.
i waited as just ahead was a R line for H1. And i wanted to make sure VC and STC are in sync.
Alert #2, all fulfilled.
Entry made and won.

Was lucky to make 2 trades within 20 mins.

For Entry #1, it was straight forward.


Alert met all criteria. First candle out of channel with a decent body size.

For Entry #2, just little patience was needed.


Alert #1 met all criteria.
Alert #2 met all too and VC shot up to 9.8 from the previous of 8. And then the candle pull backed swiftly.

Made entry and won.

4/4 ITM for today.

This trade just fell on my lap 5 mins after i made the last post, so i gladly took it.

Want to illustrate the credibility of this strategy.

Alert #1 was attempting to break out of the channel and it sounded off the BB and VC alarm.
It met all criteria except not closed beyond BB and STC was not at OB yet.

Waited for Alert #2 to close and by then, all criteria was met except STC was not at OB yet.
I decided to make an entry because STC was very near OB settings but not yet. And Alert #2 just closed at the H1
R line.

All these factors are good enough to convince me for a PUT. On top of these, i like those candles at this sizes.
And it won.

If u take the time to read all my chart posts, u will see that this strategy with its indicators is able to identify at
least the first candle that pulled back during trends. For this strategy to work to its optimal condition, the user
needs to know how to apply it.
So if u are concern about trending markets, look at the charts i posted. and scroll back the charts on your
settings.
U will be able to see either this strategy when applied correctly, not only it can advice u to avoid strong trend, it
can also assist u in identifying a momentary pull back, regardless market conditions. U just need to understand
the strategy and its army of indicators.

5/5 ITM. done. satisfied.


Hi Hubba Hubba,

Thank you for sharing this great strategy. I have been using it since its inception here in BOE
but there are still some clarifications which i hope you can help clear with:

a) You did mention that when a candle closes outside BB, it can be used as an alert candle once the VC is in the
OB/OS zone and likewise the STC. Now, i saw in your earlier explanation once this criteria are met you can
take a trade at the next candle n that appropriate direction. But on some later charts, where the scenarios were
similar, you decided to take a 2nd candle into consideration (2nd Alert) before placing a trade on the next
candle. My question is, how much confluence are we looking at before it is deemed safe to place a trade on a
subsequent candle after the conditions are met? I also saw in one of your charts that you waited for 3 candle
alerts before making an entry.

Can you give a more in depth explanation as to the characteristic of the VC which will make it favorable for
your entry? You did mention that the VC candle has to be short with more punch piercing through the 8 or -8
regions so that it gives more winning probabilities... can you give more insight on how we have to look at the
VC candles to determine an entry probability?

c) How the BB channel must be formed before a trade can be taken for your strategy to work? I found that when
the channel is tighter with a candle closing outside of it, the probability of it being in ITM is high...are there any
such rules that must be taken into consideration?

d) The size of the alert candle. I noticed that most of the trades you had taken had a large Alert candle...can you
also give a bit more detail on this like how big the candle must be or must the candle be bigger or smaller than
the previous candle & how can one determine the size of the candle with regard to that of the VC candle to
decide whether or not to make a trade.

Hello fellow traders,


This is a simple yet effective strategy coupled with a set of popular non-repainting indicators.
It was initially incepted by Tradesmart where he uses BB with a setting of 20,3 for 60 secs expiry. No
indicators are required and he has been achieving very good ITM performance, consistently. Trade setups are
much lesser per day and that is understandable given the settings of BB.
As I do not have the balls for 60 secs trades, I adopted his entry rule into my own style of trading, for 5 mins
expiry. I just added Tradesmarts rule for entry into a list of other entry requirements I already have.
I do not solely use this strategy for my daily trades but I use it when the setups are valid. About 70% of my
daily trades are based on this strategys entry while the rest are another set of rules.
Overall, we are all trading the same strategy. We are trading for momentary bounce, pull back and reversal
under 5 mins, nothing more nothing less.
To fully understand and benefit from this strategy, start with the simplicity of it.
And overtime when u are fully conversant with it, u can tweak it to your own liking.
But for now, have faith in the strategy with its system and determine how best it suits and be of service to u.
Reminder: U own the strategy, it does not own u.
The rules laid out here are to assist every trader who is new to this strategy.
In order to reap the full potential of this strategy with its supporting trading indicators, complete adherence is
required.
There is only one and it is a Cardinal Rule for this strategy.
That is we will only make an entry after the close of a complete 5-min candle. This candle had to open within
the BB and then closes outside of the BB, with its closing end of the candle body, completely cleared and
away from the BB line.
If there is any doubt about any of these, please refer to ALL my posted charts in the previous pages for
verification.
This candle will be called the Alert Candle in this thread for clarity purposes.
The Entry Candle will be the new candle after the Alert Candle is closed. Entry Candle is where we place the
trade when the new candle opens.
There maybe occasions where we have 2 or 3 Alert Candles before all criteria are met to make an entry on the
Entry Candle.
If there is any doubt about any of these, please refer to ALL my posted charts in the previous pages for
verification.
Following are the supporting rules to assist the Cardinal Rule.
The Supporting rules consist of HARD and SOFT rules.
HARD Supporting Rules : Under NO circumstance these rules are to be compromised.

1. VC candles and STC line has to be at the same condition together. Both must be at OB or OS at the same
time before any entry is to be made.
2. VC settings for OB/OS have to be at least 7 or -7. STC settings at 90 and 15.
3. BB settings at 20,2
4. No entry 15 mins before and after any news flash or economic releases.
SOFT Supporting Rules : Such are in place to further enhance our chances of winning on top of identifying
Alert Candles. These are ideally good to have but not must-haves.
1. The length of Alert Candle should be a longer body candle compare to the past 3-4 candles. We are looking
for a momentary exhausted candle.
If there is any doubt about any of these, please refer to ALL my posted charts in the previous pages for
verification.
2. When the Alert Candle has a short, average or same body length as the past 3-4 candles, ignore and wait.
3. When Alert Candle has the above attributes, regardless it is trending or not, wait for it to reach the nearest
Key PA levels.
Such levels are the coloured lines, blue and red solid and not dotted lines. Also watch for grey lines which will
be the Round Number levels. Watch for these type of candles to reach these lines and check the VC and STC. If they are
still at OB/OS, you may decide to standby to enter once Alert Candle is formed at the above coloured lines.

4. When an Alert Candle is short and still valid.


This can only be accepted when the previous candle meet the criteria as Alert Candle and has a longer candle
body. That is, if u spot a short candle and is your Alert Candle, then that must be AT LEAST your Alert Candle
#2. Remember the candle exhaustion theory.
5. If the Alert Candle #1 is a breakout candle, supported by the sight of breaking out of the BB channel, longer
candle body than the previous 3-4 candles. It is a good setup.
6. During most trending, your Alert Candle #1 will meet ALL the requirements. Do not make an entry first.
Since it is trending, correspond the strength of this trend with VC.
7. VC candles.
Settings of the VC window is by default 7,-7. I set my to 8,-8 because I just want to filter those alert sounds
away. However I would recommend all of u to try the 7,-7 setting first. That is because it gives u more time to
prep for entry. It doesnt hurt to have earlier alarms.
8. How to avoid a waterfall.
VC candles strength. This strategy is able to spot those momentary pull backs in the midst of a trend as shown
by the many charts I posted which I took the trade.
Lets refer to the VC indicator window. The candles show us the strength of the pairs on the main chart window.
Each VC candle will move according to the strength in relation to the condition of OB/OS. The mean reading is
0 which is in the middle of the window. Every time the VC candles move from the middle of the window to the
upper or lower extremities, the candle will have its body coloured according to the penetration depth from
your setting.

Lets say a VC candle is now at the OB level, reading at 12.0 which is good news for us because that is an
extremely OB condition for VC. However a pair can be at such level for extended period. Being OB for any pair
doesnt mean it has to bounce. In fact it can be OB and yet continue to climb.
So how do we make use of the VC to see if the OB/OS condition will stay longer than we expect it to be? Look
at the colour of penetration.
If your setting is at 7, and the candle is now at 12, the penetration colour started at 7. How much of the VC
candle is now beyond the 7 or how much of the candle body now becomes red?
The higher the percentage or the larger the area of penetration, the stronger is the trend.
Lets look at this again. If u have a VC candle reading at 12, u will think it is way overbought and chances for
the rebound could be the next candle. But if more than 25% of the candle body has penetrated into the OB, then
stay clear and wait. The rebound will not come in the next or even the candle after.
Look through all your charts. Verify this. That all your successful Alert Candle are those who have less than
25% of its body penetrated, extended or coloured at the OB/OS level.
In fact those who have the highest VC OB/OS reading are those that failed as Alert Candle.
9. Rule of Thumb. If u want to know if the Alert Candle will be a legit one even during a midst of trending.
Look at the VC candles. Make sure it has less than 25% penetration into OB/OS
10. Spotting the strength of trend using VC.
Watch the VC candles. There will be occasions when more than 2 VC candles are at OB/OS and the fx pair is
still trending.
Pay attention to the length of VC candle and its penetration. Usually, the penetration level remains the same but
the length of VC candle will becomes shorter. And usually after the 3rd or 4th VC candle, watch for the nearest
Key PA levels, if any. If by now at the 3rd or 4th VC candle, it is still a valid Alert Candle, and it is near a Key
PA level, u may want take the entry when the Alert Candle closes nearest to the Key PA level. I would usually
take it before it touches the Key PA level.
11. BB.
As of now I have not found any affect the shape of BB has on this strategy. Although ultimately trading using
the BB is for ranging. Hence if the BB forms a tunnel-like shape that would increase our success rate. But so far
all my successful trades were won regardless the shape BB was in.
12. STC
This can be replaced by other cycle indicators like RSI. But they all serve the same purpose as I have tested it
before. STC serves one purpose here which is to ensure it is in sync with VC. I have seen more winners when
STC and VC are in sync.

the challenge we usually have with a strategy or a system is that we are so pin-hole focus on the 'now' that we
blindsided ourselves of the bigger picture. It is an inherent flaw of any strategy and system for such short term
binary trade.
No need to beat yourself up ,if u have the intention.

Starting from the top, #1 showed us that it attempted to break out twice and failed.
And thats when it gathered speed and rolled down #2.
Then it took a breather and sideways for a while #3.
Before it continue its downwards trend #4.

Your Alert Candle meets all requirements. Even the size of it.
But u may have missed out one thing. Your Alert Candle was smack on the opening of Tokyo session.
That is why from #1-3, the Tokyo session just opened the flood gate and let it rolled down stream. Hence the
conditions at #4.

One of the rules to better enhance your chance of winning.


10. Spotting the strength of trend using VC.
Watch the VC candles. There will be occasions when more than 2 VC candles are at OB/OS and the fx pair is
still trending.
Pay attention to the length of VC candle and its penetration. Usually, the penetration level remains the same
but the length of VC candle will becomes shorter. And usually after the 3rd or 4th VC candle, watch for the
nearest Key PA levels, if any. If by now at the 3rd or 4th VC candle, it is still a valid Alert Candle, and it is near a
Key PA level, u may want take the entry when the Alert Candle closes nearest to the Key PA level. I would
usually take it before it touches the Key PA level.
So if u are bent on taking this pair to the bank, u should wait for it to reach #6.
However based on #5, and the above rule, the next candle no longer meets the rule for being an Alert Candle.
because VC is already at 6.1 mark.
U got the principle of executing it right. U just overlooked on the momentum that this pair had just before the
Tokyo session opened.
UJ kept falling for the next 2 hours after your entry. And there were NO setups at all until it bottomed out. And
there was a pretty good setup at the bottom.
my own trading rules, i leave the market alone for 15-30 mins after the opening of each sessions.

my fave setup back to back.

Alert Candle met all rules. Won.


10 mins later, attempt failed at daily pivot and RN, pinbar formed. i entered at the next candle. this play was PA
and not related to this strategy.
at the close of candle, saw the VC is still gaining speed to the lower band, liked the circled formation. made
another trade.
3/3 ITM.

Looking at the charts of the majors, the level they are at, at the economic forecast for today, and today being a
Friday. i guess this is it and welcome the weekend.

This is my observation and i make it as my own trading rules.


i didnt include it here because it might be overloading and confusing.
so this is what i look out for, further confirmation.
besides most of the rules being met for this particular Alert Candle, its VC is at 8.
STC is near but not at OB, which is set at 90. So why i went ahead?

i notice that for a pair to move from the center line of the BB to the edge or out of the BB line, within 1 or 2
candles, the next immediate, new candle, it will pull back.

Look at the first candle sitting on the base of the center line. Next candle pushed through BB line.
the third candle, it pulled back which was my Entry Candle (Green vertical line).

Look through your charts, this 'exhaustion' i call it, occurs more often than we think. and i use it as part of my
entry rules.

i prefer trading mid-day of Tokyo session until 30 mins before London.


Resume 30 mins after the open. Then all the way 30 mins before US open.
I dont trade into US much.

from the charts, it attempted and failed to bust through the Support and RN level. (green dotted line)
At the 3rd attempt, a nice long candle was formed. i like it.
Since this is another attempt, i would wait. Just like the previous pages, many traders had the same problem.
They entered one candle early because it was a long, breakout of channel candle.
But they didnt see that just above is another R line or RN level.
In this chart is the red dotted line.

I would use this long candle as Alert #1. Wait for it to touch or near the next R or RN level, in this chart is the
red dotted line.
Once it is near or touched, i made that Alert #2 with Confirmation. Then i will make entry. If based on my entry
as mentioned on this chart, it would be a winner.

This is a classic failed entry mentioned a few times already in this thread. i have also illustrated very early in
this thread.
If u have a long or short Alert Candle, and there is a Key PA level nearby, wait for it to be an additional
confirmation.
It is a very powerful confirmation. By now u should remember this.

we are all making the same mistakes. over and over again. Do u see the reason?
Because we cant wait to make an entry.

i'd rather missed a good setup than to make a not so good setup and lost.
On average each day, there would be around 6-8 very good setups from mid day Tokyo to just before US. Just
by this window alone, we should wait patiently. There is no need to jump at every setups. Instead, we should
strengthen each one with confirmation as much as possible.

Your Alert Candle met the Cardinal Rule. Although i prefer the VC to be lesser than 25% but then this is a
SOFT Rule. Its a good to have, not a must have.

If u look at your Alert Candle. It busted through the first RN line, went through half way towards the next RN
line and pull back, hence that wick. But it closed above the RN line and out of the BB line. This position says a
lot of what the candle wanted to do. Which is to break out and go towards the next RN line.

if based on this assumption, i would let your Alert Candle be #1 and see if the next candle can be #2 and be
nearer to the next RN line. If u have waited u would have noticed the VC candle would be shorter and so is the
depth of coloured tip. And the new candle is nearer to the next RN line with a much shorter wick. And for all of
this, i would make the next candle as Entry.

it's ok. If u read through this thread, such setups happen on a daily basis on numerous occasions, and many
newbies got hurt by it. Take it as your baptism of fire.
hi everyone !

based on all the posts regarding Entry gone bad, i have tightened the rules to this strategy.
i am currently experimenting it and i am satisfied with the results.

I will update the new rules next week.


It is not a major revamp or extreme makeover but just 1-2 added steps.
These are very logical steps for your understanding. U are encourage to scroll through your charts and
determine for yourself if the new tweaked rules are beneficial to your trading style.

It is also not a hassle type of rules. Non-restrictive but added confirmation for higher chances of making it ITM.

Thanks for all your feedback. Happy Thanksgiving everyone !!!

Hubba, thank you a lot for sharing your results for today.

I took a view of them and make these observations, in order to understand your rules

EURUSD 1440hs Does not meet VC and STC hard rules WIN
EURUSD 2000hs Does not meet cardinal rule LOSS
USDJPY 1150hs Does not meet STC hard rule WIN
USDJPY 2050hs Does not meet cardinal and STC rules WIN
USDJPY 2200hs Does not meet cardinal rule, candle starts outside BB WIN
USDJPY 2325hs Does not meet STC hard rule WIN
AUDUSD 2145hs Does not meet STC hard rule WIN

GBPUSD 1900hs Its OK for hard rules, but why didnt you entered 1855hs?
Candle at 1850hs meet hard rules and stopped right at RN
So, trying to make some conclusions, I've observed that the STC hard rule of beeing over 90 or under 15, is not
that hard? Isnt it?
I saw also some trades that did not fill even the cardinal rule. If you can explain them a bit, will be very
gratefull !!
Thanks!
Regards

Let's take it a step at a time. Give this strategy and yourself some time.
Once u feel that it suits u, we can discuss about how to 'fish' the same fish but with more options.

This is my personal experience. i have read many threads about a strategy, a winning one.
Before it reaches its half way mark, the entire thread is skewed toward a totally different strategy and system
focusing on getting 100% ITM.

I may be old school, but i believe that getting a 100% ITM performance does not solely comes from a strategy.
It comes from the user and the way the user executes his/her strategy. The user is dynamic like the market, the
strategy is just a list of do and donts.

In this context, let's put in the hard work into ourselves first, before hammering out a strategy to give us 100%
ITM.
We start by testing the strategy and testing our patience, discipline, understanding and diligence in executing the
plan. If we cant even do the above mentioned, how can we even handle a strategy if its really able to give us
100% ITM ?

my apologies if i offend anyone. I thought i should re-emphasizes this, The strategy or system does not own u.
U own it.

Trade #1 EU
PUT won.

Followed the strategy.


Cardinal and HARD rules all met. plus SR level as shown.

Trade #2 UJ
PUT won.
Followed the strategy.
Cardinal and HARD rules all met except for STC. plus SR level as shown.
Despite STC not met, i like the how the Alert Candle went beyond the R line and closed below.
Alert Candle looked like an overstretched candle to me which was why i decided to enter although STC not
met.

Trade #3 AU
PUT Lost.
Did not follow the strategy.
Entered based on the red candle with wick near to the R line.
Apart from the Cardinal rule, all rules are met.
Should have waited and entered at the next candle.

Trade #4 & 5 EU
Both PUT won.
Did not follow the strategy for trade#4.
Each entry were based on the previous candle position and condition.
Trade#4, Doji and pierced but closed below the R line. Hence entered at the next candle.
Trade#5, breakout candle, good body length, long wick pierced through but closed below R line.
Cardinal and HARD rules all met.

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Trade #6 & 7 GU
PUT and then CALL both won.
Followed the strategy.
Cardinal and HARD rules all met plus SR/ RN level as shown for trade #7
Trade #6 had a good breakout candle body.

Trade #8,9 & 10 EU


Trade #8 PUT Lost
Followed strategy but lost. All Rules met except the VC tip was over 25%.
Should have waited for another Alert Candle. That would have won.
Trade #9 PUT Lost
Did not follow strategy and lost. Was based on the red candle that closed below the BB.
Trade #10 PUT Won
Followed the strategy.

Cardinal and HARD rules all met plus SR level as shown for trade #10
i was expecting it to retrace back to the R line. Hence the PUT. Which it did hover around that level for some
time later.

Trade #11 UJ
PUT won.
Did not follow the strategy.
Entry was based on the previous candle position and condition.
Doji and pierced but closed below the R line. Hence entered at the next candle.

Trade #12 AU
CALL won.
Followed the strategy.
Cardinal and HARD rules all met except for STC. plus SR level as shown.
Despite STC not met, i like the how the Alert Candle stopped at the R line and closed. This was a R line which
AU hovered for some time earlier in the day.
Alert Candle looked like an overstretched candle to me which was why i decided to enter although STC not
met.

Trade #13 UJ
PUT won.
Followed the strategy.
Cardinal and HARD rules all met and managed to avoid the trend with the help of VC.
Classic good setup despite the trend.

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Trade #14 EU
CALL won.
Followed the strategy.
Cardinal and HARD rules all met plus SR level. And managed to avoid the trend with the help of VC.
Classic good setup despite the trend.

Trade #15 UJ (Last trade)


PUT won.
Followed the strategy.
Cardinal and HARD rules all met except for STC. plus SR level as shown.
Despite STC not met, the breakout candle met Alert Candle's requirement with good candle body length.
Alert Candle looked like an overstretched candle to me which was why i decided to enter although STC not
met.
And it just closed above the mtf SR line.

Great Work Hubba Hubba! I do have few questions for your trade #13:

a)If you look at your chart, there were clear entry opportunities at multiple areas where the candle had closed
outside the BB meeting all conditions. So why did you not take any of these trades

Is there a specific reason for you to take that particular trade as we saw that multiple candles had closed
outside the BB & wouldnt it be safer to avoid this type of trade?

kind regards
Hubba, these post that you have just done are invaluable for all of us. Thank you very much for taking the time
for such a detailed explanation of each trade.

I've only a pair of doubts (some similar to the question arafad just asked)

Trade #13
1) Cardinal rule says that alert candle must open within the BB. But this is not the case. Why do you say this
trade meets cardinal rule?
2) When you say "managed to avoid the trend with the help of VC", this is the hard part for me. How do you
manage it? Only with the <25% VC rule? (see trade #14 below)

Trade #14
3) Same issue, avoid the trend. Why didnt you enter at 16:45?. Meet all the rules, even the <25% rule for VC,
S/R and RN are far away.

General question
4) In your set of rules, you detailed that VC levels should be 7/-7 but in your charts are 8/-8. The <25% rule
should be taken with 7 or 8 levels?

Finally, thank you again. I've read many forums and many posts. But it's hard to find the level of detail and
information quality you deliver, sincerely.

Regards

Gaston

Great Work Hubba Hubba! I do have few questions for your trade #13:

a)If you look at your chart, there were clear entry opportunities at multiple areas where the candle had closed
outside the BB meeting all conditions. So why did you not take any of these trades

Is there a specific reason for you to take that particular trade as we saw that multiple candles had closed
outside the BB & wouldnt it be safer to avoid this type of trade?

kind regards

thanks arafad.
trade #13, those previous candles before my Entry does meet most requirements but not the SOFT rules for VC.
Again SOFT rules are not a must-have but ideally good to have as i listed.

I was just waiting for an indication that the upward trend would be waning off soon. And from the OB % of the
coloured tip VC tells me that. Based on my SOFT rules for % of coloured tip VC, most of the candles didnt cut
it. Until the Alert Candle closed with wicks on both ends, VC coloured tip % was acceptable. Then i know it
was going to wear off the upward trend soon.
Hence the Entry.

Hubba, these post that you have just done are invaluable for all of us. Thank you very much for taking the time
for such a detailed explanation of each trade.

I've only a pair of doubts (some similar to the question arafad just asked)

Trade #13
1) Cardinal rule says that alert candle must open within the BB. But this is not the case. Why do you say this
trade meets cardinal rule?

2) When you say "managed to avoid the trend with the help of VC", this is the hard part for me. How do you
manage it? Only with the <25% VC rule? (see trade #14 below)

Trade #14
3) Same issue, avoid the trend. Why didnt you enter at 16:45?. Meet all the rules, even the <25% rule for VC,
S/R and RN are far away.

thanks Gaston,

Reply to Q1:

4. When an Alert Candle is short and still valid.


This can only be accepted when the previous candle meet the criteria as Alert Candle and has a longer candle
body. That is, if u spot a short candle and is your Alert Candle, then that must be AT LEAST your Alert Candle
#2. Remember the candle exhaustion theory.

Reply to Q2:

6. During most trending, your Alert Candle #1 will meet ALL the requirements. Do not make an entry first. Since
it is trending, correspond the strength of this trend with VC.

8. How to avoid a waterfall.


VC candles strength. This strategy is able to spot those momentary pull backs in the midst of a trend as shown
by the many charts I posted which I took the trade.
Lets refer to the VC indicator window. The candles show us the strength of the pairs on the main chart window.
Each VC candle will move according to the strength in relation to the condition of OB/OS. The mean reading is
0 which is in the middle of the window. Every time the VC candles move from the middle of the window to the
upper or lower extremities, the candle will have its body coloured according to the penetration depth from your
setting.
Lets say a VC candle is now at the OB level, reading at 12.0 which is good news for us because that is an
extremely OB condition for VC. However a pair can be at such level for extended period. Being OB for any pair
doesnt mean it has to bounce. In fact it can be OB and yet continue to climb.
So how do we make use of the VC to see if the OB/OS condition will stay longer than we expect it to be? Look
at the colour of penetration.
If your setting is at 7, and the candle is now at 12, the penetration colour started at 7. How much of the VC
candle is now beyond the 7 or how much of the candle body now becomes red?
The higher the percentage or the larger the area of penetration, the stronger is the trend.
Lets look at this again. If u have a VC candle reading at 12, u will think it is way overbought and chances for the
rebound could be the next candle. But if more than 25% of the candle body has penetrated into the OB, then
stay clear and wait. The rebound will not come in the next or even the candle after.
Look through all your charts. Verify this. That all your successful Alert Candle are those who have less than
25% of its body penetrated, extended or coloured at the OB/OS level.
In fact those who have the highest VC OB/OS reading are those that failed as Alert Candle.
9. Rule of Thumb. If u want to know if the Alert Candle will be a legit one even during a midst of trending. Look
at the VC candles. Make sure it has less than 25% penetration into OB/OS

Reply to Q3:

Please refer to my reply for arafad in the previous post.

Hubba, these post that you have just done are invaluable for all of us. Thank you very much for taking the time
for such a detailed explanation of each trade.

I've only a pair of doubts (some similar to the question arafad just asked)

General question
4) In your set of rules, you detailed that VC levels should be 7/-7 but in your charts are 8/-8. The <25% rule
should be taken with 7 or 8 levels?

Reply to Q4:

7. VC candles.
Settings of the VC window is by default 7,-7. I set my to 8,-8 because I just want to filter those alert sounds
away. However I would recommend all of u to try the 7,-7 setting first. That is because it gives u more time to
prep for entry. It doesnt hurt to have earlier alarms.
i hope i have answered all your questions to your expectations. Feel free to clarify and verify your doubts.

In respect with the previous answer, 25% beyond 7/-7 threshold is quite different than 25%
beyond 8/-8 threshold. Doesn't this affect the Rule of the Thumb, only for the luxury of getting rid
of too many sound alerts? Also take into account that this version of VC indicator gets its values
in relation to the Hights and Lows of current candle, including wicks while we are looking at the
Close of the candle in order to qualify it as an Alert Candle. Sorry if I tend to be too annoying.

hey rowish, thanks for the feedback, i appreciate it.

U are right in that perspective of how much % of a coloured VC tip in relation to the settings of 7 or 8.

Which is why i leave this as a SOFT Rule.


When i first chanced about this VC indicator, it was over at BOD, the MBFXVC thread.
i remembered the setting then was at 6. i tried it for myself, there were hits and misses and also because i was a
total noob.
Since then, i still use VC as part of my trading strategy and i find that VC set at 8 is comfy for me.

I encourage new users to this strategy to set the VC to 7 is simply wanting them to use it for themselves and
gauge.
VC at 7 does trigger off a lot more alerts than 8 and that is essential for me.

however the % of coloured tip VC or the penetration depth into the OB/OS band. It is not an absolute figure to
work with.
as i laid in my rules, regardless what % of the coloured tip is, we are looking for the strength of its OB/OS
condition with reference to the preceding VC candles and thereafter.

But if the Alert Candle has a nice long body, breaking out of the channel, hitting or going to hit the nearest SR
line. And the VC is near or at 7 or 8, regardless the lack of coloured tip VC or penetration depth, i take the Entry
next.

in my HARD Rules, the only requirement is for VC to be at least 7. And this HARD Rule is to support the
Cardinal Rule.

I hope i have at least provide some clarity into this. Thank u for your comment !

Hi Hubba

I'm also trying to filter some waterfalls, putting the BB with (20, 2.5), did you try with values between 2 and 3?,
because it is really hard to know if the current candle will close far apart from the BB when you are trading live.

Although it does not redraw, the BB changes its position to align to the next candle. So when you enter the
trade, BB seems far apart, but suddenly the price moves against your trade, and BB touches the alert candle. If
you see these candles in a backtesting, you surely wouldnt have traded them, but in live trading you will !. How
we can avoid this?

Hey Gaston.
There are a couple of approaches to your concern.

1. When u see a candle breaks out, and its seems to be starting a trend, avoid it.
2. Like what u suggested, tweak the BB settings to 2.5 or 3. U will see a significant drop in setups. This will
also work.
3. Only take an Alert Candle when it is a certain distance cleared from BB lines. Here we are talking about
proximity of the clearance between the BB line and the closed edge of the candle.

All the above suggestions are sound, logical and workable.


If these suits your trading style, risk appetite and your expectations, give it a try.

May i suggest this. Take a closer look at my Friday trades screenshots.


I believe about 80% of them are in a trend and rather strong.
Yet, with the rules and indicators, i was able to single out most of the Entry Candle and win.

The Cardinal Rules, HARD & SOFT supporting rules, the default settings of BB and the template of indicators
assisted me in making a sound decision. Maybe it might not suit u. Or simply u have not given it and yourself
enough time. Or even u might have certain expectations from it.

Just take it easy, go through the rules again. See it in your mind how it would pan out in live trading market.
Rationalize every rules, the indicators and read through the thread again.
Up to this point, i still think that this is a simple yet effective strategy.

Lastly, the market is dynamic. There will be misses but with this strategy, there will be more hits than misses.

Thanks Hubba, very helpful your answer.

When you said

1. When u see a candle breaks out, and its seems to be starting a trend, avoid it.

How can I realize that it seems to be starting a trend? Is there any other tip or soft rule appart from the <25%
VC?

This strategy is very accurate. The only issue I see dificult to avoid for a non trained eye (like mine), are
waterfalls. So that is my insistance about it, hope not being annoying about that!

Thanks and regards

Gaston

Let me try an explanation too. I don't know which pair that is but from the Bollinger Band on the
left it looks like it has been strongly bullish. Then it went into a ranging market. Seller and buyers
were not sure which way to go. I added two white lines to visualize the range, marked with 2
white arrows. If a candle breaks this line I have to adjust it as I don't have the correct range or it
starts trending again.

Periods like this are a pure treasure chest for Binary Options traders. You could have easily 3 wins
(marked with the green arrows) as the candles stopped exactly at the S/R lines.If you are ok with
more risk you can even trade the wicks touching the line. Finally it broke out of this range and
that's where you placed your trade. That would be exactly the moment when I would stop
trading.

hey Thaiminator, thanks for your explanation, appreciate it.


It really looked good with the drawn lines and i am not sure if anyone trading real time would have such confidence and
foresight like u do. At least not me as i am quite new to this.

Just to add, the moment u stop trading is exactly where i come in base on the strategy in this thread.
As this thread is focusing on trading when the movement is out of the BB, i would like to keep it tight and focus
on the context of the discussion here, for all those reading this.

thanks for your post again.


1. When u see a candle breaks out, and its seems to be starting a trend, avoid it.

How can I realize that it seems to be starting a trend? Is there any other tip or soft rule appart from the <25%
VC?

Frankly with my limited experience in the trading market, these are the few things i live by regarding spotting
trends.

1. Check the mtf. M15, M30 & H1. Are they forming the same pattern.
2. is the trend result of a breakout due to news or data?
3. is the trend due to the start of a trading session?
4. is there a global impact, like the plunge of oil prices?

The problem we have here is that we are looking at M5 charts. We are like a frog in a well, restricted view.
Thinking the world is all within the well. Very often we are not aware of the formed trend. This is a lack of
situation awareness we have to acknowledge.

my suggestion is that if u are not comfy spotting breakouts, then wait for momentary pull backs, bounce or
reversal. This, the VC, STC and even EMA/SMA can assist.

We dont have to be the first to pull the trigger whenever something moves. We can also wait for it to be sloppy,
slow and exhausted then we pull the trigger.

better to miss an opportunity at the start of a trend than to lose a trade at the start of a trend.

Look at the importance of STC during this waterfall.


within the rectangle is 8 candles in main window and 8 VC candles.
at the 4th candle, it seems that STC is near the OS level but not there yet. But VC tip is at 25%, so no deal
according to rules.
Then by the 8th candle, STC and VC tip all met rules. And the next candle becomes the Entry. It was a good
entry.

this is one of the many NO-BRAINER. Just read up the rules, follow it and apply it.
It will guide u out of waterfall. There is no conflict in any indicators or with the rules.

easy does it, NO-BRAINER. Just need the disciple, patience and diligence.
please refer to the above post for the reason behind the entry and avoidance.

smoki,
the 4th candle as mentioned by u, it did not meet all the rules.
it is the one labelled as 'Failed Alert Candle'.

According to rule :
1. The length of Alert Candle should be a longer body candle compare to the past 3-4 candles. We are looking
for a momentary exhausted candle.
If there is any doubt about any of these, please refer to ALL my posted charts in the previous pages for
verification.
2. When the Alert Candle has a short, average or same body length as the past 3-4 candles, ignore and wait.
The next candle to me will be the Alert Candle because it meets the size requirement. But it is my Alert #1
because it failed to meet the VC rule, it broke the more than 25% rule.
According to rule :
6. During most trending, your Alert Candle #1 will meet ALL the requirements. Do not make an entry first. Since
it is trending, correspond the strength of this trend with VC.
Next candle will be Alert #2.
According to rule :
4. When an Alert Candle is short and still valid.
This can only be accepted when the previous candle meet the criteria as Alert Candle and has a longer candle
body. That is, if u spot a short candle and is your Alert Candle, then that must be AT LEAST your Alert Candle
#2. Remember the candle exhaustion theory.
5. If the Alert Candle #1 is a breakout candle, supported by the sight of breaking out of the BB channel, longer
candle body than the previous 3-4 candles. It is a good setup.
The Alert #2 meets ALL the rules. Hence the next candle would be the Entry. The bonus is both Alert #1 & 2
touches the RN line and bounced off.
i hope this illustration is clear for u, smoki.

FAQ #1.

I have followed all the rules, Cardinal, Hard and Soft supporting ones. And yet i lost that trade, why ?
ANS : Because all the rules and indicators used are all lagging. They only assist in making a very narrow and
isolated educated guess. They are not holistic in any way. Use this strategy realistically.

FAQ #2.

Can this strategy be use in other time frames and expiry?


ANS: i have only tried it on M5 and M15 for 5 min and 15 min expiry respectively. There is no change to the rules.

Hey ScalperX, thanks and welcome !

yes i am still using this strategy for most of my trades. i primarily trades momentary pull backs , bounce and
reversal.
This particular strategy, i have been using it since Nov last year. However i have been using BB as my core
trading strategy for about 18 months. But i am not a trader by profession, i only try to squeeze in trades in the
midst of my day job at the office.

good job on the trades. i believe this strategy can assist in making very good and profitable decision. i was
telling the skype chat group that if u use this strategy correctly, having 3/3 ITM per day is highly doable.

Interese conexe