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Saturday, March 16, 2013 1:22:37 PM
Hypothesis...Master trading...price and Band outside 50,2BBs...
Re-post this and is also on the Intro Page...
Master trading...price and Band outside 50,2BBs...
(added a comment #8 and fixed some things...go ahead and add a link to the Intro...I may expand on this Law of 1/3s someday...
The following is another reason to master the Bollinger Bands first.
Price outside Band and/or Bands outside 50,2...=super bullish or over extended...once price back inside band your indicators should start signaling...all there is to it. (speaking here only from the long buy side...point of view)
Simple=trades happen within these parameters...
....think ...
1. Reversion to the Mean...when price outside bands...
2. Signals don't start until price is back inside the Bands...
3. 50,2 doubleBollinger Bands frequently work "exactly" like pivot points...they may give better signals than pivot points...
4. excellent for one step out of the money options when thinking mean reversion...
5. Law of 1/3rds applies...=sell 1/3rd and you're longterm with 2/3rds...The one third you sell buys the options as a hedge=so that you can be longterm...right from the start...
***6 when all three indicators signal from overbought or oversold levels...you have an outstanding play...and an even more outstanding option play one step out of the money...
7. All trades really happen on the daily chart...with signals.
(8. Intra-day charts are used for getting you to the daily chart movement and on the same side as daily bias...)
Simple as it gets= trading within a very well defined set of parameters...
You are now an expert...) =not on original post***
Give back some to a good cause...
Enjoy.
The correct setting for the 20,2 Bollingers is done with the 60,2 doubleBollinger Bands. 20,2 Bollinger... equals 20 trading days in a month...60,2 doubleBollinger...equales 3 months in a quarter=20x3=60...
SLV...with silver I've already taken 1/3 of postion as profit and have some of it as a hedge to remaining 2/3rds...you become a long term player from the start and SLV can round trip as often as wants because profit from hedges re-loads with silver when it becomes oversold with a buy signal... accumulating more shares as you go...
Hypothesis...Master trading...price and Band outside 50,2BBs...
Re-post this and is also on the Intro Page...
Master trading...price and Band outside 50,2BBs...
(added a comment #8 and fixed some things...go ahead and add a link to the Intro...I may expand on this Law of 1/3s someday...
The following is another reason to master the Bollinger Bands first.
Price outside Band and/or Bands outside 50,2...=super bullish or over extended...once price back inside band your indicators should start signaling...all there is to it. (speaking here only from the long buy side...point of view)
Simple=trades happen within these parameters...
....think ...
1. Reversion to the Mean...when price outside bands...
2. Signals don't start until price is back inside the Bands...
3. 50,2 doubleBollinger Bands frequently work "exactly" like pivot points...they may give better signals than pivot points...
4. excellent for one step out of the money options when thinking mean reversion...
5. Law of 1/3rds applies...=sell 1/3rd and you're longterm with 2/3rds...The one third you sell buys the options as a hedge=so that you can be longterm...right from the start...
***6 when all three indicators signal from overbought or oversold levels...you have an outstanding play...and an even more outstanding option play one step out of the money...
7. All trades really happen on the daily chart...with signals.
(8. Intra-day charts are used for getting you to the daily chart movement and on the same side as daily bias...)
Simple as it gets= trading within a very well defined set of parameters...
You are now an expert...) =not on original post***
Give back some to a good cause...
Enjoy.
The correct setting for the 20,2 Bollingers is done with the 60,2 doubleBollinger Bands. 20,2 Bollinger... equals 20 trading days in a month...60,2 doubleBollinger...equales 3 months in a quarter=20x3=60...
SLV...with silver I've already taken 1/3 of postion as profit and have some of it as a hedge to remaining 2/3rds...you become a long term player from the start and SLV can round trip as often as wants because profit from hedges re-loads with silver when it becomes oversold with a buy signal... accumulating more shares as you go...
Hypothesis...Master trading...price and Band outside 50,2BBs...
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