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JLS

08/28/15 12:22 PM

#14263 RE: TREND1 #14260

TREND1,

HAL serves his master obediently.

And like a good slave, he always follows behind his master.

Which means: his intraday predictions are worth squat. His master didn’t know that but now he does.

Your trade as defined is still ongoing. The upper BB() boundary has not been touched in spite of what "HAL" has "predicted". That is quite obvious as shown in the chart below. The trade might be profitable when it ends, but it hasn't ended yet.

As you can easily see in the chart below, a good BB() system would be one in which a good Long trade would follow the upper BB() boundary upward at it trends higher, while a good Short trade would follow the lower BB() Boundary downward.

That means that one would not use the touch of the upper BB() boundary as a sell indicator. That’s just the opposite of how it should be used.

So, with that in mind, the last good trade would be a Short trade that would have signaled on August 17 (the touch of the lower BB() ), followed by confirmation by the red candle on August 18 (and that could be predicted by another method). That trade would be closed at the large green candle at the bottom, August 26, as the green (hollow) candle touched the center of the BB(). That trade would have a gain of around 10%.

Look over the entire chart. You will see many good trades using that BB() method, some of them real humdingers both Long and Short.

A good carpenter never blames his tools, as he already knows what their limitations are.