Hi KelvinHand
Here are some special comments.
Take time.
give your unbiased opinion
I don't find Bollinger Bands that useful -
when price gets to the extremes,
they simply widen to accommodate more movement.
HTML:
specialist comment-you can verify in live market
I don't find Bollinger Bands that useful -
when price gets to the extremes,
they simply widen to accommodate more movement.
===The tunnel of 5's does something different, though -
it's job is to help filter out the noise and false starts,
and also to help keep you in trades longer and separate normal retracements from reversals.
Tunnel of 5's is a combination of two moving averages:
5-period smoothed moving average applied to the highs
5-period smoothed moving average applied to the lows
(if your charting package doesn't have smoothed MAs, then use exponential)
The idea is that you want to be trading Outside of this tunnel.
The tunnel can also show you a "squeeze" prior to a break-out forming,
which is part of the reason--" I do no need Bollinger Bands up on my chart"-
(in fact, John Bollinger himself once told me that " the best use of his bands is in option spread pricing, NOT in fx trading)."
Many people "over trade" in that as soon as they get out of a long, they look to go Short, AND vice-versa.
The Tunnel of 5's forces you to wait, to see if the reversal is really in fact a reversal. Sort of acts as a buffer zone. AND, by the time price works it's way across AND comes out the other side of this tunnel, chances are if you compare with your longer timeframe (multiple timeframes, don't forget),
that will give you permission to change directions as well.
The two work together quite nicely.
(No trade while price is inside the tunnel--PERFECT CLARITY)
You will find many moves accelerating once price moves to the Outside of the Tunnel of 5's -
this is because most bank traders are watching these levels,
AND consider a move "confirmed"
(AND jump on board themselves) once they see this.
The other function of the Tunnel of 5's is to distinguish
between the end of a move AND
normal market "breathing".
So if you're already in a trade, AND price starts moving against you,
the Tunnel of 5's can either give you the confidence to stay in longer (as long as candle bodies
continue closing back Outside of it),
OR tells you to perhaps consider abandoning your position early,
ahead of target (if the Tunnel of 5's is breached with a candle body Close).
http://i40.tinypic.com/xf5cex.png[/IMG]"]http://i40.tinypic.com/xf5cex.png
Compassfx has a code for HeikinAshi and smoothed ma of 5 period highs and lows. alternatively,Dean Mallone recommends EMA8 of highs and lows
i DONT HAVE IT. will find it.
[B]Why all this trouble?
Becoz I dont want the bands to move along with price extremes-bands need to be steady & form a reference not dynamically moving but sort of firm one like a wall.[/B]
http://i40.tinypic.com/2j2xncy.png"]http://i40.tinypic.com/2j2xncy.png
Above shows PAC price action channel for Nifty JULY FUTURES 10 minutes
KEEP IT SIMPLE-CLEAR[/QUOTE]
Remember this: 5-period smoothed moving average is actually 9-period exponential moving average. You superimpose and see. not much diff with 8EMA.
OK. if you find this suitable to you. You can also combine with the bollinger band. You can use Keltner Channel also, no that widening.
Using the BB was tried find out the basis of alpeshpatel. It did not find the BB tally with his chart.
I don't think his method find the extreme, you can see that after the entry
it can go up future and then reverse, it had to had the money management with it.
There is some usefulness of SMA50 BB:
- It serve as a Take profit area, MidBand as 1st T/P and OuterBand as 2nd T/P
- SMA50 reaction to Price Action from current and the higher time frame.
Purfect Example:
[IMG]http://i.imgur.com/ibfJ1u4.jpg
The only issue is what the content of alpeshpatel arrow indicator to pin point the entry. Who know It may OBOS indicator to sync with the Outer Band.
I shown you the TDI and also the pfb_OSOB, that could be another way of judgement. Definitely, not every location is right. but likely possible with Support and Resistant area.
And the title is contain Pullback element, but his chart maybe did not reveal too much information. The is one possibility of the price reaction to the SMA50 on the higher time frame but react as price reversal at the band extreme.
Study that and see.
Based on your above chart, since you are not taking the close price after break out the tunnel, then no issue.
There could be cases that the break out , trigger out entry but back into tunnel or break out the other side
Lucky to find this example after the above statement to illustrate to you:
Assume you like KISS, and with your only 5SMMA tunnel, you could had enter:
That is why your Post #13 is historical data, you know where to place the entry.
Some people will take long instead of the short.
What is your confirmation to take short ?