BBMA winning method for trading”, that is based on Bollinger Bands and moving averages.
The setup of the strategy.
BBMA consists of the use of 2 indicators:
1. Moving Averages
2. Bollinger Bands
BBMA consists of 3 types of entries:
1. Extreme
2. MHV
3. Re-Entry
Moving Average Settings:
There are 5 MA used in the system:
2 High Moving Averages, 2 Low Moving Averages and 1 Exponential Moving
Average.
•MA 5 HIGH (RED)
•MA 10 HIGH (YELLOW)
•MA5 LOW (MAGENTA)
•MA10 LOW (WHITE)
•EXPONENTIAL MA 50 (AQUA)
Bollinger Band Settings:
Period = 20
Shift = 0
Deviations = 2
Apply to = Close
Downtrend: MA 5/10 HIGH is above the candles. MA 5/10 LOW goes through the candles. MA 10 HIGH is above. MA 5 HIGH. MA 10 LOW is above MA 5 LOW.
Uptrend: MA 5/10 LOW is below the candles. MA 5/10 HIGH goes through the candles. MA 5 HIGH is above. MA 10 HIGH. MA 5 LOW is above. MA 10 LOW.
The above MA are only used to help determine trends use the MA50 on a dailychart to help and get confirmation of the trend. When the market is above the MA50 price is said to be in an uptrend. When the market is below the MA50 price is said to be in a down trend.MAs can also act as support and resistance.
BBMA Entry Types:
1. Extreme
2. MHV
3. Re-Entry
4. CS Direction
5. CS Momentum
EXTREME SETUP:
Downtrend:
1. MA5 HIGH (RED) breaks the TOP BB.
2. Candles Stick (CS) reverses and closes within the TOP BB.
3. Candle Stick (CS) retests MA5 HIGH (RED) or Zone Line of Fire
(KILLZONE) – this is the ENTRY POINT.
4. TP at MA5 LOW (MAGENTA) for safety
Uptrend reverse conditions:
MHV SETUP:
MHV applies to the end of a trend (Market Reversal) after a rise or fall of
the market.
Occurs when the market weakens and loses momentum to continue either
up (uptrend) or down (downtrend).
In some cases MHV can be identified as a double or triple top.
MHV is formed after an Extreme.
RE-ENTRY:
Re-entry is formed after the Rise/Fall of a price or market and the price or
the market is now forming a sideways market for a Re-entry.
Uptrend – MA5/10 High acts as resistance. Re-enter sell position when
the market finds MA5/10 High. CS are under the MA5/10 High.
Downtrend – MA5/10 LOW acts as support. Re-enter buy position when
the market finds MA5/10 Low. CS are above the MA5/10 Low.
Powerful Re-entry – MA5/10 and MID BB meet or collide.
Most Powerful Re-entry – MA5/10 MID BB and MA50 meet or collide.
Re-entry occurs for a minimum of 3 candles per TF. That is H1=3 Hours
1D = 3 Days H4= 12 Hours etc.
Notepad 5
MACD (12, 26, 9) can be used to confirm entries:Extreme and MHV
Re-Entry is already confirmed by the moving My favorite entries are the Extreme and the re-entry.
Note: When the bands are compressed do not enter !!!
My advice is to initially trade with a single entry the one that best suits our style.
The template is formed as in the image.average.
Uptrend= MACD histogram >MACD line.
Downtrend= MACD Histogram < MACD line.
Examples of trades
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