Boll Breakers

The term “Boll Breakers” has evolved by using the Bollinger Bands, RSI, Cam Levels and the other levels together as an effective trading method. I know it’s a crude name but it reminds me of my wife.
Boll Breakers are used on the 5 minute chart.
S/R Levels
First of all, you have already plotted the 3 levels as described in the ‘Indicator’s and Tools’ section.
These s/r levels in conjunction with fib levels projected on the 5 min chart are great places to look for trades. You already know how to place trades at these levels by using the Breakout technique.
Cam Levels.
These are also s/r levels but they are special. Price respects cam levels with great accuracy.
There are 4 levels you need to plot. Just draw a horizontal trendline to indicate a cam level.
Boll Breakers
for the plotting order.
Generally, price will bounce around between the “Long” and “Short” cam levels.
You can use this information to your advantage by using the breakout method to trade at these levels. Your initial stop loss will be on the other side of the level. This will provide a tight stop with potential for great profit.
Once price has broken the Long or Short cam level, you need to wait until it arrives at the Long or Short Breakout Level. If price breaches this level, there is a good chance it will continue in that direction. Enter a trade as described before.
See figure below 10 -2 for a good example of how price broke through the Short cam level and then bounced off the Long Breakout cam level. In this case, there would be no trading until price penetrates through the breakout level.
Boll Breakers
Bollinger Bands (BB) with RSI
When price touches or breaches the upper or lower BB, it is an opportunity to trade if confirmed by the RSI.
Buy Signal: When RSI has touched or extended below 30 and has started to tick up & price has just touched lower BB, place a buy order immediately.
Sell Signal: When RSI has touched or extended above 70 and has started to tick down & price has just touched upper BB, place a sell order immediately.
There is a proviso when using these 2 indicators together. Price must be between the Long and Short cam levels for better probabilities. If price has passed these cam levels, price can continue in the same direction for a while longer before turning around.
You will get signals 2 to 4 times (on average) during a trading day. Rest of the time, stay out!
See figures below for examples.
Boll Breakers

Boll Breakers
Stops and Exit
There are 2 types of stops and exits. One type is good for aggressive traders and the other type is suitable for non aggressive traders.
Aggressive Trader: Place initial stop loss 10-15 pips away from the high/low formed after touching the BB. Exit when price reaches opposite BB if trading in direction of prevailing trend as determined by daily/4 hour chart. Make sure money management allows a win/loss ratio of at least 1:1. If trading anti- trend, exit at middle BB. If you are really aggressive and you have your finger on the trigger, you could leave the stop loss out altogether but you would need to exit at the middle BB regardless of the price at the time. This is not recommended.
Non Aggressive Trader: Place initial stop loss 2 pips above the high/low formed after touching the BB. Take into account the spread if trading short and chart is in BID mode. Placing the stop at this location
will give you a real tight stop and is great for money management. Exit when price reaches middle Bollinger Band. With this method of placing stops, you may get stopped out a little more than the aggressive trader but if you employ proper money management and you trade this formation often enough, you will end up winning in the long run. If trading against the daily/hourly trend, move stop to breakeven after 7-10 pips profit. Keep in mind that the middle of the band will move as the trend progresses, so move with the times and
exit as you have planned even if it means taking a profit of 1 lousy pip or even a loss.
In all cases, before placing the trade, make sure there is enough space between your entry and your intended exit. If your potential profit is only 5 pips, I wouldn’t risk it.
Boll Breakers
Confirmation Trades
You can use all of the techniques and methods discussed above in conjunction with each other. This will provide added confirmation to a trade entry. These confirmation trades are quite common as you will see.
Examples
• Price may be reaching the top bolinger band as well as reaching the short cam level at the same time
• Cam level and s/r level happen to be at the same level (figure 11 GBP and CHF)
• Important fib level may coincide with BB or cam level or s/r level
• Trendline bounce may coincide with BB or any another level discussed above
• BB, RSI and any level appear together (figure 11 Euro)
• Stochastic Divergence (discussed later) confirms with BB or any of the above
There are numerous scenarios, too many to mention here. See figures 14 and 15 for some more examples.
As you can see, Boll Breakers gives you ample opportunity to enter trades throughout the working day. It works pretty well 75-80% of the time. Since there is a chance that you may lose, it is wise to use good money management rules when considering a trade using this strategy.
Boll Breakers

Boll Breakers
Below the link for download Camarilla Pivot indicator Metatrader 4.
https://drive.google.com/file/d/0Bwjv2Pbf48itdHRJNVg3bmZYM00/view?usp=sharing

Related

Bands Trading 6773543923705727536

Post a Comment

emo-but-icon

item