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Re: CoyotteSBMExample of a Bollinger Band Breach + Retrace TradeSBM --- currentNote B/Bs MUST be set at 20 x 2 simpleThe breaching of the lower band is indicating that SBM is over sold , But is NOT a entry signal (remember HIH )The entry signal was the blue bar above the band ( SEPT 19 ) and the C/B was the blue lines -- NO ENTRYThe next signal was the blue bar ( Sept 22) and the C/B from the low is the green line -- there has been 3 closes above this line so it is confirmedThe current STOP is the lower red line , from the current high .The upper red line is showing the first major resistance level .Note : SBM chart shows constance resistance on any UP move -- hence the point I was making in a prior thread , in Tread Trading look for stocks that have few if any previouse highs.At this stage as U can see from this chart , indicaters are useless , the new trend has yet to develop -- currently its Price Action ----- When/ If the D+ line crosses the D- line and the ADX line tracks the D+ ( but remains below the D+) in a up direction , then U have confirmation that a UP trend is in place and the ADX is changed to 21d ---- Trend Trading Rules would then take over from Break Out Trading Rules.THE SEPT 19 C/B ARE NOT ON THIS CHART --- but nut out where they should beDisclosure : Will not have a position in SBM
Re: Coyotte
SBM
Example of a Bollinger Band Breach + Retrace Trade
SBM --- current
Note B/Bs MUST be set at 20 x 2 simple
The breaching of the lower band is indicating that SBM is over sold , But is NOT a entry signal (remember HIH )
The entry signal was the blue bar above the band ( SEPT 19 ) and the C/B was the blue lines -- NO ENTRY
The next signal was the blue bar ( Sept 22) and the C/B from the low is the green line -- there has been 3 closes above this line so it is confirmed
The current STOP is the lower red line , from the current high .
The upper red line is showing the first major resistance level .
Note : SBM chart shows constance resistance on any UP move -- hence the point I was making in a prior thread , in Tread Trading look for stocks that have few if any previouse highs.
At this stage as U can see from this chart , indicaters are useless , the new trend has yet to develop -- currently its Price Action ----- When/ If the D+ line crosses the D- line and the ADX line tracks the D+ ( but remains below the D+) in a up direction , then U have confirmation that a UP trend is in place and the ADX is changed to 21d ---- Trend Trading Rules would then take over from Break Out Trading Rules.
THE SEPT 19 C/B ARE NOT ON THIS CHART --- but nut out where they should be
Disclosure : Will not have a position in SBM
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