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Bollinger Bands (BB)

Which Way will Gold Go?Hello Traders, This is a mid-morning update. Following Gold's failure to close yesterday above the previous day's high, and today's failure to hold above the 1267 price level, I closed my Gold position that I had opened last week. While it would be very unusual for price not to at least touch the midpoint on the BB, there is also a very good chance that price will attempt to re-test the bottom of the current range @ the 1250 area. So, instead of waiting it out, I decided to book some profits going in to the weekend and then wait to see the price action next week. The Natural Gas trade that I discussed the other night is going very well and I will continue to hold my short position through the weekend. Trade Safe and Protect Your Profits!
COMEX:GC1!
by GoldBands
Gold At Potential BreakOut LevelGood Evening Traders, It's always nice to have a solid move after an inside bar and that's exactly what we got today with Gold. Gold closed the day up 6.3 points to close out at 1262.9. After trading sideways for 7 days, including that inside day yesterday, the precious metal was able to finally push up past the inner Bolling Band. In addition, the Stoch RSI is at the cusp of breaking above the 20 line, which would be a significant harbinger of the start of a new cycle to the upside. There is now significant room to above for Gold to make it's way to the BB midline @ 1290.90. And while that level may show some resistance, I think it would be more likely that price would continue on to the 23% fib retracement level @ 1300. Let's see what tomorrow brings and if we do have another up day, I will be moving my protective stop up as well. Safe Trading and Protect your Profits!
COMEX:GC1!Long
by GoldBands
An Inside Day for GoldGood Evening Traders! Another lackluster day for Gold, that's for sure! Gold traded up to a high of 1258.2 but that was not enough to break last Friday's high, showing that Gold remains extremely range bound. On the positive side, the Stoch RSI continued to make its way toward the 20 line, giving the bulls hope that a breakout is due in the next couple of days. After hours trading on Monday night has been bullish with Gold finally breaking Friday's high but struggling to stay above the 1260 mark. With GBP Consumer Price Index reports at 1:30 am PST, let's see if that can move the needle here. US Consumer Price Index is due out at 5:30 am PST. I've drawn 3 major areas of support and resistance on the chart. It's interesting how they coincide with the 23, 28 and 50 percent retracements on the yearly move up. Let's watch the areas for sure. I am long at 1258 with a stop at 1240. With a first profit target at 1305, that's a slightly better than 2:1 risk reward on the trade. Safe Trading and Protect your Profits!
COMEX:GCZ2016Long
by GoldBands
Gold Holding at the 38% FibHello Traders! Gold prices have maintained a steady state at the 38% fib retracement level. That fib is drawn from the low of 12/15/2015 @ 1056 to the high of the year at 1383. Steaming from the big selloff two weeks ago, the Stoch RSI has had time to stabilize and may be ready to move above the 20 line. Could this be the beginning of the next cycle up? We definitely need to be patient and wait for confirmation, especially as the Stoch RSI is still moving down on the weekly chart (see pic below). It's interesting to note that last week was extremely bullish for the US Dollar. Even though the dollar was moving strongly to the upside, Gold was able to hold it's position and did not sell off in response. This could mean that Gold has a lot of underlying strength. Gold will usually decline in the face of a strong dollar. I've added a chart below that shows the relationship between Gold and the US Dollar. Let's watch for confirmation to the upside. Hopefully we'll have a clearer picture in the next few days. Safe Trading and Protect your Profits! Weekly Gold Chart: Gold vs. US Dollar:
COMEX:GCZ2016
by GoldBands
NFP - How Will Gold React to Non Farm Payroll?Good Evening Traders! Well, here we are again, Gold trading just above the 1250 mark. Today was a solid day down, with Gold trading 16.7 points off the opening to close at 1253. We have come right to the top of this support area that was last seen on June 24, the day the British approved Brexit, and the day when Gold rallied 108 points in 1 day!. It's amazing isn't it how these cycles play out; 3 and a half months later and we are on the verge of another volatile day, but this time its Non Farm Payroll Friday. As you can see in the chart, we have been riding the extreme edge of the Bollinger Bands. And as we know, this is not a sustainable situation as price will almost always pull back from such extremes. You can also see on the Stoch RSI that the green signal line has final crossed over the magenta line. While this doesn't necessarily mean that the down cycle is over and that price will reverse, it does give us a clue that it might happen soon. And given Non Farm Payroll day, the safest play might be to go to cash and protect your profits. To recap, the 3 main factors to thinking that the pullback might be over are: Price has spent 3 days on the outside edge of the outer Bollinger Band Price is right at the upper edge of a major support zone Stoch RSI signal line has started to cross above the magenta line Following my own advise, I am closing all of my current short position except for 1 contract which will be a runner. With the stop at set at break even, it's a very safe play. Safe Trading and Protect those Profits!
COMEX:GC1!Short
by GoldBands
Today's Doji after Yesterday's Extreme Move Down.Good Evening Traders! Well, after yesterday's explosive move down, it's not surprising that Gold took a pause today. With a total range of 15.3 points, the net down move today was 1.9 points. I did take a new short position early in the morning and I'll get to that later in this post. I'm expecting volatility to come back into the market tomorrow and Friday as there are a couple of big news events. Tomorrow at 4:30 am PST is the ECB Monetary Policy Meeting Accounts. With Brexit on everyone's mind, this will be an interesting event to say the least. This is followed an hour later by the US Initial Jobless Claims report at 5:30 am PST. And then on Friday is our friend, Nonfarm Payrolls, at 5:30 am PST. These events are almost guaranteed to get the markets moving again, perhaps finishing off the downward cycle in Gold. Now on to my trade. As I mentioned yesterday, I was waiting for a good pullback in Gold so I could re-enter and catch another wave to the downside. Using the hourly chart, at 5 am, price came up, penetrated the upper BB and then the next hourly candle failed to take out the high. Also, the Stoch RSI was in overbought territory. While not a picture perfect pullback, with a tight stop, the risk was containable. For my profit target, I am using a weekly chart and the lower BB which is at 1243.50. Hopefully, we'll end the week with some good movement to the downside. Safe Trading and Protect Your Profits. Hourly Chart Weekly Chart
COMEX:GC1!Short
by GoldBands
Gold Blasts Through All Major Support LinesGood Evening Traders! I've been calling for the bottom of the current cycle and last night I pointed out that there was major support below my current Gold short @ 1305. There was the upward trend line dating back from January, the channel bottom from July 1, and the bottom BB Band (2.0 Std Dev), all sitting right at 1305. This was also confirmed by a Stoch RSI that was about to break below 20, signalling the possible end of this latest downward cycle. I went to bed last night confident that my final profit target of 1305 would be hit in the morning, ending my latest short that started at 1331. Well, boy did I have a surprise when I woke up in the morning! I mean, price didn't even hesitate at the 1305 level. It blasted right through 1305, 1300 and there was no stopping it. If you look at any shorter time frame, you will see that this move down was dramatic and without any real pause or pullback. In my post last night, I stated that the Stoch RSI is not a binary indicator. This means that just because it is oversold or overbought, doesn't mean that the cycle is over. The indicator can stay in these oversold/bought conditions for quite a some time. Look at the chart below. I've called out the period in late August when the Stoch RSI stayed oversold for over a week while price continued to move down. If you're thinking of going long, I'd recommend waiting for the Stoch RSI green line to break above the 20 level and cross over the magenta line. If you want to go short, you can wait for a pullback. The bottom BB is at 1283. That could be a good entry point. That is, if price retraces that much. Trade Safe and Protect Your Profits!
COMEX:GC1!
by GoldBands
Using Multiple Timeframes to Enter a TradeHello Traders! As many of you know, I use the Stoch RSI as my main cycle indicator. As an indicator of an indicator, it normalizes the RSI indicator itself and provides excellent guidance on the price cycles of Gold. And while I base my daily analysis on the Daily time frame, I use 2 shorter time frames to enter my positions. These time frames are 30 minutes and 60 minutes. Let me give you a real life example from yesterday of how I added to an existing short position. Last week ended with a beautiful down candle on the daily chart. Long upper wick and a full body that closed just a few points above the bottom of our wedge. With plenty of room left on the Stoch RSI before it crossed the 20 line, I wanted to add another position to my existing short. But I new that I didn't want to jump in at Friday's closing price. So how could I gauge any potential pullback and set an entry price? The first thing I did was to look at the 30 and 60 min charts, specifically to find where price was on those charts in relation to the overall down cycle. Here is the 30 min chart on Sunday night at 11 pm PST. It's clear from the Stoch RSI that price was at the bottom of it's cycle. Not an ideal time to enter a trade. And the same was true on the 60 min chart (bottom chart). Therefore, I wanted the Stoch RSI to cycle up to get the best possible entry price. Looking at the BB, I placed a limit order at the inner BB (1.0 Std. Dev) @ 1321, thinking that would give both Stoch RSIs enough time to complete an up cycle. Turns out that was pretty close to the high of the day! I have had the best entries when I wait for the cycle indicators across multiple time frames to get in sync. Waiting for harmony across multiple time frames is a great way to create a repeatable system for entries and really helps to remove emotions from your trading. I would love to hear if this technique is helpful! Safe Trading and Protect Your Profits!
COMEX:GC1!Education
by GoldBands
2
USD/JPY GOLDEN 4H SIMPLE STRATEGY/ VERY ACCURATE Along side my trend channels and range trading, I like to use this set up for some extra pips and when back tested works very well over most months (Will probably move to only this strategy when I can guarantee consolidation is not taking place) It cuts all emotions out of trading when I use it with the right money management. Everyone should know that moving averages will indicate direction of price and wether you should be buying or selling with the trend. Gold stars indicate correct setup. Arrows are entry. Red line is SL movement. STRATEGY: SMA CROSS & BOUNCE TIMEFRAME: 4H (Will give traders time to enjoy their life and trades can be made simply from mobiles on the go) CHARTS: USD/JPY GBP/JPY (Works the best because of high volatility) INDICATORS: MA (50/200) BB (20) RULES: BUY ENTRY 1. BB (MA20) must be above MA (50) 2. Price must cross above both BB (MA20) & MA (50) 3. Price must test BB (MA20) as support while above MA (50) 4. Bullish conformation candle from support 5. Buy/Long Entry is made. RULES: SELL ENTRY 1. BB (MA20) must be below MA (50) 2. Price must cross below both BB (MA20) & MA (50) 3. Price must test BB (MA20) as resistance while below MA (50) 4. Bearish conformation candle from resistance 5. Sell/Short Entry is made RULES: SL AND HOW TO PLAY IT 1. SL Placed at bottom/top wick of conformation candle depending on buy/sell 2. Allow price to move in trade direction 3. When price retests MA(20) SL is moved to top/bottom wick of candle 4. repeat until price no longer stays above/below MA(20) and hits SL. I have given 2 previous example of how this strategy works in the past few weeks, I hope you all enjoy it and would love some feedback and some helpful information to combat consolidation periods. Current signal for Long order highlighted. Please use strategy with your own judgement.
Long
by RenkoBuddy
5
USOIL. Five reasons to short oil 1. Expected USD raise after US GDP revision and Janet Yellen´s speach. 2. This is a W4 corrective wave from a 1-2-3-4-5 count, started by the beginning of the month. It hasn´t arrived yet to 78.60% retrace which is not normal for this kind of wave: normally, there are bigger retraces. 3. Downtrend respected: hasn´t broken the blue downtrend line, hasn´t broken the fork´s median line. Looks like a re-test and further retrace. 4. BB showing a retrace from the cloud top towards the basis which should be tested. 5. Last week USOIL crossed a weekly 88 MA and hasn´t re-tested it yet. Should be done by tomorrow or Monday Bonus: Brent futures (CB1) switch to a new contract on the 30th of August. Perfect moment for dumping the old contracts and bring monies to the new one. Outcome: will short CL1 tomorrow. Don´t want to short it now to avoid unnecessary risks overnight. Will open the trade manually but I expect the prices to be around 47.40 when this happens. SL: 49.10 TP: 44.60
TVC:USOILShort
by captain_smollett
9
To Bromad, With LoveBBands set to (30) Triangles also represent a squeeze on the BBands The past two squeezes of this magnitude have hit either R3 or S3. My expectation is that this breakout will do the same. Although admittedly, the pivot math is greatly altered due to the BFX hack selloff, so therefore the S3 pivot at 2270CNY may be a little low, but does fall within previous support of the ascending triangle. Sitting flat at the moment, waiting for the direction to be decided.
B
by IAmSatoshi
1
GBP/USD,240After the release of the Manufacturing PMI this morning with actual figures being better than previous and forecasted figures there has been a spike in GBP up to the two descending trend line channels of which have been rejected up to now. I am expecting a little bit more retracement to the downside following this spike, however will be looking to see if there is a breakout from this outer trend line, at which point i will be trading bullish. Although i don't trade fundamentals, there is a few news events which could cause big fluctuations in this pair today and tomorrow, especially with non-farm payroll so i will trade with caution.
by MitchellShoesmith
Continuation of the bearish marketMy analysis from last week was correct. We had a smooth downtrend, which was confirmed by the BB%. The market broke the trend channel on friday. For the upcomming week I do see following development. A pullback to 1.12480 ( a 0.382 retracement of the new wave). Following new down movement to 1.11121. Indicator BB% shows me that on the 4H timeframe the market is oversold. Thus I expect pullback. However the BBW shows me expanding BB. Thus I expect continuation of the downtrend. What do you think? Do you follow my idea?
Short
by John_Boba
AUDNZD Bullish Gartley PatternAfter a 3 weeks downtrend looks like it's going to reverse. - A bullish gartley pattern where "D" is flirting with the Bollinger Band and S1 of my Pivot Point - I'm nice reversal pattern pattern of the candlesticks I'm going to go long on Monday as soon as market open, My stop loss is set just a few pips below D. For now my take profit is in the middle of my support area, this might change based on the number of Building Approvals for Australia and NZ. Either I'll set a trailing stop or I'll close half my position and see where the other half go.
Long
by Pronoe