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Re: Coyotte

Moderator's Note- This post is by Coyotte:

Barney :

Most of my trades now are initiated by either a " rising triangle " or a " bull flag " for a long position --- the reverse of these two patterns for a short position.

C/B is not applicable to these types of trades , they are usually entered around the 2/3 point of the pattern development . ---- this is short term price target trading --- C/B is used for confirmation when some other method of entry is signaled eg: Trend Line Retrace -- Bollinger Bands breach + retrace --- MA cross over ,etc, etc .

Those where the type of trades I moved on to AFTER coming to terms with TREND TRADING .

Will post a graph of SBM -- a " Bollinger Band Breach + Retrace " which has been confirmed by C/B .

When Bollinger Bands are being breached it is warning that a move in the opposing direction is on the cards (minor or major ) ---this can either be taken as a warning to start taking particular notice of the price action --- eg: Breach of the short term trend line , tighten the ADX from 21d to 14d , UP pointing tails on candles , mostly RED candles , daily price contracting --- I use these as a group for a Exit ---- the C/B exit is the LAST RESORT -- if that is hit, I have lost touch with this stock .

OR the Breaches can be used as the starting of a Trade Set Up in the opposing direction ---- The SBM graph will show this

As to opening a position when the B/Bs are being breached --- generally NO!

The Specs are Flighty Money and the Traders would eat me for breaky !

Much prefer to see the price action Tracking the Upper Band , without any breaches .

Cheers