We will use Bollinger bands, RSI and ADX for the system components.
Bollinger bands around price action, Bollinger bands around a 14 period RSI and ADX 14 period with a + and â DI (Directional Index.)
The idea behind Bollinger bands around RSI is that Bollinger bands can provide a relative overbought oversold indication. Whereas a typical signal from RSI is when its above 80 and falling we get a sell, and below 20 and rising we get a buy, using Bollinger bands we can actually get some nice signals that otherwise would be missed by using the standard RSI in its typical form.
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The entire thought process behind this system is that we want to capture some small moves, but not at the risk of missing the big ones. Whether this is a daily chart, or a 1 minute chart, or any other for that matter there are large moves, small moves, and then the real BIG moves.
As a trader you should focus a good portion of your efforts on capturing the BIG moves, because a few of those, and some times less, is all you need to grow an account rapidly.
There is a give and take when thinking this way and the first thing you need to decide is this â Do you want to trade for a time, or do you want to trade for the long term ? You see anyone can make a buck trading, anyone can impress their friends or family with a nice stock pick, maybe even 10 in a row, but can you put your money on the table for 5 years and in the end have a lot more than you started with?
Thatâs the ticket. Staying in the game 5 years or 10, starting out with $10,000 and having an account with 6 figures that you have grown, and even lived off of a little bit.
You see trading is much more than “picking stocks” the process of taking $5,000 or $100,000 and making a consistent profit for the long haul is actually much easier than most people would lead you to believe, but even harder to implement. (So they say.)
The question is, can you just let it be “that” or are you going to complicate things and throw in the towel early on because itâs just too difficult, or the “system” is a piece of crap?
Donât get me wrong there are “crappy” systems out there, but the bottom line is, if you define a set of rules and adhere to them accept when adjustments are made, you will likely do very well, and the benefits are enormous.(We only make adjustments AFTER we trade NEVER during a trade, and generally only after a lot of trading.)
So follow along, this is likely going to be a very profitable journey if you just apply the rules to your preferred time frame, first of course on paper!
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Course Requirement: Mark Deaton – Bollinger Band Matrix System
Real Value: $49.0000
One time cost: USD29.0000
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