If you look only at the title, many people may think that it smells like human. However, if you hold on at this point all the time and go forward, there is a possibility that you will make a huge profit. It’s a trend change. Entering in the direction opposite to the direction of the moving average line, betting on the trend change. Hopefully it’s super easy to get hundreds of pips, and even those who have lost a lot of money can even get a positive balance, not just a single trade. This article describes the entry points and prerequisites for that trend shift.
- Prerequisite 1: Put on Bollinger Bands
- Prerequisite 2: A strong trend is occurring
- Prerequisite 3: Always check the hourly bar on the long-term bar
- Prerequisite 4: Bollinger Bands show signs of reversal
- Prerequisite 5: Wait until 50-60% of the most recent inverted candlestick is returned for entry
- Loss cut point
- Profit taking point
- Since it is a swing premise, it is natural to carry over the day
- Patterns that this tactic does not fit
Prerequisite 1: Put on Bollinger Bands
Open the chart and try wearing the Bollinger Bands. This will tell you the strength of the market. Try adding the middle line, + 2α, -2α.
Prerequisite 2: A strong trend is occurring
This is a very important point. The prerequisite is that there is a one-sided and intense uptrend or downtrend. It is preferable to move at least 300 pips on a daily basis for 4 hours or 8 hours. Be aware that this tactic may not work if there is a strong return in between.
Prerequisite 3: Always check the hourly bar on the long-term bar
Always look at the long-term bar for the hourly bar. There are too many bad fish on the 1-minute and 5-minute legs, and you will be caught. After confirming that a strong trend is occurring on a daily basis for at least 4 hours, 8 hours, look at the chart in about 1 hour and 2 hours.
Prerequisite 4: Bollinger Bands show signs of reversal
Notice the black circle. After a strong uptrend, it has dropped to around -2α below the Bollinger Bands. Please check this first.
Prerequisite 5: Wait until 50-60% of the most recent inverted candlestick is returned for entry
Let’s wait until about 50% to 60% of the latest hidden line surrounded by blue frame is returned. After that, the entry is in the part surrounded by blue circles. If you fit it here, you can start dropping and get a large price range.
Loss cut point
If chart returns more than 80% of the lost points, it will be difficult, so let’s settle the position. This time it means that the flow did not come.
Profit taking point
It depends on how much you have raised or lowered in the previous uptrend or downtrend. You can aim for more than half of the amount raised or lowered immediately before. Of course, it may move more than the previous raising or lowering, but please be aware that if you aim big, you will be more likely to come back.
Since it is a swing premise, it is natural to carry over the day
This trading method assumes that you hold your position for a few days. Due to the wide price range we are aiming for, there is a high possibility that we will not be able to settle within one day.
Patterns that this tactic does not fit
There are two patterns that this tactic does not fit. One is the pattern of just returning once by continuing the previous trend. The other is a pattern in which the trend has ended and it has entered the range. Both have patterns that do not fit this tactic, so if this example applies, you have no choice but to give up.