Complex trading system #9 (H4 Bollinger Band Breakouts)

Hi Edward,
Highly appreciated and Thank you very much for this website existed.

Landori
Malaysia.

i'm sorry this is nonsense.please put up a chart and re-explain.

OK, so this strategy intrigued me, but I couldn't make heads or tails out of it, and it seems as if others here were likewise confused. I followed Joe's link and I think I understand the strategy. For my own edification, I re-wrote it for my records in a way that I could follow it. With apologies to Joe if I got anything wrong, I submit what I wrote up here.

Joe, if you're still checking in, please correct me if I got anything wrong.

I have not tested this strategy at all, only sharing what I think is a more understandble explanation of the strategy:

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Open the 4 hour chart of any currency.

Insert the Bollinger Band (20) indicator and be sure that its center line is visible. We’ll need the center line on the 1 Hour chart later.
Identify the 2 points of your lower Bollinger Band that enables you to draw a line such that the line touches your BBs only on these two points. If no such line exists, we do not draw a line on this chart. If one exists, extend it forward. It is referred to as our SELL break line.

Alternatively, identify the 2 points of your upper band that enables you to draw a line such that the line only touches your BBs on these two points. Again, if no such line exists, we don’t draw the line. Extend it forward, and this is our BUY break line.

If you have a BUY break line: When a candle in the 4 Hours chart closes above the break line, open a 1 Hour chart. We do this because it will confirm a valid trade. The 1 Hour chart will have our break line on it, and we now see the Bollinger Bands determined by the 1 hour bars or candles. If the center line of the Bollinger band on the 1 hour chart has crossed the break line recently, then we trade LONG. Crossing the Break Line recently is a confirmation even if there has been a slight retracement and the center line is currently below the Break Line, as long as it is fairly close to the line and curving upward.

If you have a SELL break line: When a candle in the 4 hours chart closes below the break line and the center line of the 1 Hour Bollinger band has recently crossed the break line, then we trade SHORT. Again, crossing the Break Line recently is a confirmation even if there has been a slight retracement and the center line is currently above the Break Line, as long as it is fairly close to the line and directed downward.

I hope I got that right, and I hope it helps.

Joe (T)

Hi Joe,

Thanks a lot for your great efforts in re-explaining the strategy.
I understood the strategy the same way and based on my understanding I can confirm that you've nailed it.

Thank you!

Best regards,
Edward

I am sorry joe, as i am newbie i would prefer a chart , can u please draw a chart and explain like our Edward does every time

Hi Joe,

Thanks for posting your system. I was hoping you could help me. I draw a line on the 4h chart but then I go to the 1h chart and the line doesn't appear. Do I need to draw the line on the 1h chart as well, and if so, how do I make sure the line is corresponding the same low or high points as the 4h chart?

Thanks Joe

It shouldn't be like that.
When you draw a trend line on 4h chart it should remain visible on 1h, otherwise it is a lot of trouble and no use.

Ask for an advise from your Forex broker. There must be a way to see the line crosscharts.

Thomas

OK for the entry, but what about the exit (SL, TP, TS)?

And have you tried this method on lower timeframes (e.g. 5min and 30min)?

Thanks.

Chamane