Inside Day Bollinger Band Turn Trade
by Trader Rich
There's a new forex article on Investopedia titled, "Inside Day Bollinger Band Turn Trade" by Jamie Saettele. I don't know much about the author except that a lot of his articles involve trading systems. It's a good read because it shows how simple it can be to develop a system that could potentially be your money maker. I remember a Rob Booker seminar where he said that if you put yourself in a room long enough, you can make a trading system out of anything. This is absolutely true. The question is whether this system can be profitable or not. That would all depend on your rules, expectations, money management and a whole lot of other things but it is possible.
Read the article at http://www.investopedia.com/articles/forex/06/BBInsideDay.asp
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This methodology is really nothing new. I’ve (& colleagues) traded BB’s using inside bars & neutral/exhaustive bar prints @ Big Numbers for quite some time.
Not only is the particular zone on the technical chart important for this type of entry to work, but also the make-up of the outer BB.
Providing the zone is confirmed (ie: a Big Number) with either a Fib or Pivot & your accompanying price aids also signal “green” then the risks are low.
The article explains well, what is a very good trade opportunity.