BollingerWorm !!!
- Thread starter columbus
- Start date
Your markings show the buy/sell at the peaks, whereas the rules say that the trade should be undertaken after the ema crosses over the other side. Now the confirmation / true signal would come only after the bottom most / topmost candle is fully formed and we are onto the next candle. Often we have seen the EMA cross back below/above the BB by the time the TF gets over. Hence the trade can be taken only on the next candle after the crossover is confirmed.
This, of course, is the issue with price action based trades, because the trader makes his move after the signal is complete, which renders him vulnerable to whipsaws
. I don't think that many of us would be able to catch the bottom most/ topmost candle, because most of us maybe thinking that the next candle would he lower/higher, so better wait till the up/down move is complete and definitely reversed, as confirmed by EMAs re-entering the BB.
This, of course, is the issue with price action based trades, because the trader makes his move after the signal is complete, which renders him vulnerable to whipsaws
. I don't think that many of us would be able to catch the bottom most/ topmost candle, because most of us maybe thinking that the next candle would he lower/higher, so better wait till the up/down move is complete and definitely reversed, as confirmed by EMAs re-entering the BB.TP,
That is so very true. We have to wait for the next candle to form to make sure that the crossover has indeed happened. Another issue is that I am finding it difficult to follow the intermediate targets of BB(20,1) etc. The margin is so less that many times it barely beats the charges. So, we need a full excursion of the BB to make consistent profits.
That is so very true. We have to wait for the next candle to form to make sure that the crossover has indeed happened. Another issue is that I am finding it difficult to follow the intermediate targets of BB(20,1) etc. The margin is so less that many times it barely beats the charges. So, we need a full excursion of the BB to make consistent profits.
Your markings show the buy/sell at the peaks, whereas the rules say that the trade should be undertaken after the ema crosses over the other side. Now the confirmation / true signal would come only after the bottom most / topmost candle is fully formed and we are onto the next candle. Often we have seen the EMA cross back below/above the BB by the time the TF gets over. Hence the trade can be taken only on the next candle after the crossover is confirmed.
This, of course, is the issue with price action based trades, because the trader makes his move after the signal is complete, which renders him vulnerable to whipsaws. I don't think that many of us would be able to catch the bottom most/ topmost candle, because most of us maybe thinking that the next candle would he lower/higher, so better wait till the up/down move is complete and definitely reversed, as confirmed by EMAs re-entering the BB.
This, of course, is the issue with price action based trades, because the trader makes his move after the signal is complete, which renders him vulnerable to whipsaws
. I don't think that many of us would be able to catch the bottom most/ topmost candle, because most of us maybe thinking that the next candle would he lower/higher, so better wait till the up/down move is complete and definitely reversed, as confirmed by EMAs re-entering the BB.
Very valid and important query ,I will take up in couple of days.