Rock It

I’ll be 50 next year. I’m hoping to retire by the age of 52.

I would like to make a Macdulio’s MT4 Legacy video series where I would post all the basic routines and pass on as much of my thinking as I can.

I need to gain all full control of my time first and I also need to prove my own worthiness in my own eyes by paying off my flat – out of trading. This would mean £350k to be made in about 2.5 years, and I am starting with an additional £28k built up debt. Now you know why I am constantly pulling out money. I am a professional trader, but I want to be come a full time trader with minimal liabilities and dependencies first. Root for me.

To get some idea about the basic stuff, this blog entry could be potentially part of this.

30 mins chart.

Plot 30-sample hourly Bollinger Bands. That’s 60 in half an hour terms.

The horizontal lines are the first closes where volatility broke, i.e. the yellow circles.

As a next step, start acknowledging the one side to the other flips / new band Pops with a P.

The new direction is now set. Your should get 2 good entries before the move is over. These two entries would come in form of a contiuation divergence, meaning that the second entry would be a lower high / higher low.

In a sideways market (a squeeze) the muted moves would also have a 5-wave structure, but the second entry would actually be an undercut of the low or a beat of a high. Brown numbers. Yes, the second #2 looks like a Pop of the bands, but you would need more slack on boths sides, like the P to its right, which clearly managed to set the new direction for good.

The first suspect entry for the #1 is the middle band (60-SMA HL2) if price does not stop there, cost averaging on the other side is an option, see the image above.

From the #2 print price should travel outside the BB, but at times you would get a whole lot more if you manage to stay in. Here’s where that first 30-minute close outside (the horizontal lines) can come in handy.

So the current possible outcomes are: if price goes outside the BB on top first, double down on the shorts, move the #1 print, as the direction is down for 3 more legs from that point on.

Friday’s close could qualify for a #2 entry, but that would be unusually near to the #1. At this point it looks more like an echo.

The bands are very narrow, a decisive break outside and no closes above the new 30-minute close outside could be ridden and added to upon a pullback to the middle line.