Steps to identify setup for trading..... 1. Open TF H1 & H4 chart – Look at the MA50 and the Middle BB in order to indentify an UpTrend or a DownTrend 1. 2. 3. 4.
UpTrend – CandleStick is above MA50 and the Middle BB DownTrend – CandleStick is below MA50 and the Middle BB Sideways – MA50 is sideways, close to the Middle BB and the CandleStick would be situated close to the Middle BB & MA50. Sometimes, the CandleStick would be situated below the MA50 but above the Middle BB, therefore it is also considered Sideways. Mostly at this time, the Middle BB would be sideways.
2. Once the trend has been identified, open TF M15 chart
Example : Lets say the Trend in TF H1/H4 is a DownTrend. Therefore, we only await for Sell positions only and ignore Buy positions (If you would still like to open Buy positions, it is permissable, but you would need to know at which point to TakeProfit)
1.
Sell – CandleStick breaks the Top BB and Top BB is horizontal/sideways. MA5 Red exceeds the Top BB and CandleStick closes below the Top BB and the MA5 Red. This scenario would be the best Sell Signals. Sell – CandleStick breaks the Top BB and BB is horizontal/sideways but MA5 does not exceed the Top BB and CandleStick closes below Top BB and MA5 Red. This would also be a good scenario for Sell Signals. Sell – When MA50 is situated near Top BB or Middle BB. CandleStick tries to break past it but is not able to and subsequently closes below MA50 and BB (Middle or Top). If MA50 at Top BB, it is best Sell Si gnal. If MA50 is at Middle BB, Sell position can be made but becareful of the TakeProfit point and do not be greedy. When CandleStick breaks MA5 Red and Top BB when MA5 Red and Top BB appears vertical, eventough the CandleStick has closed below MA5 Red and Top BB, do not place Sell positions. In this situation, it shows that the price is still about to go up, therefore wait until the CandleStick stops breaking the Top BB, as this is the moment a retracement will happen. This technique and situation requires deep understanding and extra observation is needed when placing positions.
2. 3.
4.
Note:
I advice to follow Method 1, 2 and 3 if you are still unsure regarding the BB+MA technique, but if you feel you do understand this technique, try testing Method 4, preferably on a DEMO Account. If Method 1, 2 and 3 is followed correctly, InsyaAllah you will always be successfull. For advanced traders, this same method can be applied for Buy positions eventough the Trend on TF H1 and H4 is a DownTrend. The only thing is, you should understand that you are trading agaisnt the current, therefore, the TakeProfit will not always reach the Top BB. Setting the TakeProfit at the Middle BB would also be considered ok. Hope this explanation helps fellow traders that do not fully understand this technique.
