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BB entry technique

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Super Contributor
Ok, so here is a usefull entry technique using BB bands.....very simple but it does work. There is also another version using the RSI indicator which is also very effective. My favourite trade is one beginning with either this entry or the RSI technique....seeing the move close above th 20ma which is another entry point and finally entering into bbs1 and bbs2 range where it can begin a longer term trend. Hope its usefull. Rules for the Long Trade 1) On the daily setup, place a 20-period SMA and make sure that the price is above the moving average on a closing basis. 2) Take only long trades in the direction of the trend. 3) Move to the hourly charts and place two sets of Bollinger bands on the chart. The first pair of Bollinger bands should be set to 3SD and the second pair should be set to 2SD. 4) Once the price breaks through and closes above the lower 3SD-2SD Bollinger band channel on an hourly basis, buy at market. 5) Set stop at swing low minus five points and calculate your risk (Risk=Entry Price - Stop Price). (Those traders who want to give the setup a little more room can use swing low minus 10 points as their stop.) 6) Set profit target for the first unit at 50% of risk (i.e., if you are risking 40 points on the trade then place a take-profit limit order 20 points above entry). High Probability Trading Setups for the Currency Market 77 e-book Part 2 High Probability Trading Setups 7) Move stop to breakeven when the first profit target is hit. 8) Exit second unit when price closes below the upper 3SD-2SD Bollinger band channel or at breakeven, whichever comes first.
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