Why? How? Can you be more specific? Yes, you are trading in hindsight -- a one bar hindsight. You never predict, you react. Grow up, there is no guarantees in life. There will always be a phase 1. A phase 2 will always follow a phase 1. A phase 3 will always follow a phase 2. You said you have read the book. Maybe it is time to read it again? ;-)>
I do not think you understood my point. I am not looking for guarantees, I am looking for trading rules. When do you enter, when do you exit/stop? Provide the rules. Also, if someone enter a position in phase 2 thinking that phase 2 is still going strong when in fact prices are at the beginning of phase 2, that would likely lead to losses. So the increasing price property is valid in hindsight in terms of the time scope. One needs the rules (not rules that guarantee anything, but just the rules). I am suprised that you did not understand my point. A seasoned trader would understand this quickly. As for the book, it is well written, but I do not think that there is anything in it that will make one a lot of money. If it would, it would have made the author himself a lot of money. The last time I checked he is not on forbes list. Someone even wrote that the author indicated that he does not make money with them or something in that regard (read earlier posts in this thread). I however like BBs, and I have my way of exploiting them.
Your attachment is incompatible with my vista and i had to shut down and restart. Not the first time that i've had this problem from et posters.
with currencies BB can help with other indicators (which includes multiple timeframes). 2.5 standard deviations seems to work a bit better i find for calling tops and bottoms along with stochastics and rsi for confirmation.
I find bollinger bands are very good technical indicators. I find them especially useful in detecting breakouts.
I have posted an EasyLanguage code for the Bollinger Band Squeeze (BBS) Indicator. http://www.elitetrader.com/vb/showthread.php?s=&postid=2229919#post2229919 (18) <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2229932> (164)