I am starting to use this method of multiple bollinger bands. In my opininion looks like EUR could continue down for while. Any thoughts, experiences with using this method.
Thoughts? Yes, how did it work out when you backtested hundreds of diverse trades using this method and tabulated the overall results in terms of profit factor, drawdown, etc. ??
1) There is no "optimal" time period nor combination with any indicator(s). 2) Eventually, you should be able to look at a bar chart and be able to "know" what the indicator will indicate.
Ulla, perhaps it would help if you explained how you propose to use multiple bands. MY own objection is that if one band doesn't suffice, why should more bands be better?
any method will work if you use the same one long enough,after seeing the same patterns over and over on your screen so many times, you'll get an intuition simply by osmossis,although this one looks as if it would be very hard on the eyes over a long period of time
and the advantage over using multiple bands to just one is, what?. All you've really done is just clutter your charts up imho.
Well I was using the multiple bands to distinguish noise from trending, because each successive band should contain more of the price action. So once price action reaches say the 3rd SD, then we should have a higher probability of seeing heavy trending or a snap back to the mean. But it is really the outer 2nd SD or sometimes I use 3rd SD band that is marking this. So I have culled the inner bands an am continuing my osmosis with the outer band only at present!! Thanks for your feedback everyone. I really appreciate all of it.
Thanks for explaining. And please permit me a recommendation. If you have the financial resources to subscribe to a data service which also allows you to backtest, you will save yourself much trading loss and sadness going forward to do so. ESignal, for examaple, is in the range of $150 a month. With it you can rather straightforwardly code up your BB observation and test it. I have been doing that for nigh on to ten years, and there is rarely a day goes by that I don't want to slit my wrists because backtesting proved my latest brilliant idea to be an illusion. Happened three times yesterday alone.
Yup. It's like this with me: Step 1: Come up with new idea. Step 2: Quickly realize idea could potentially be the holy grail (get excited!) Step 3: backtest/run the numbers/whatever (wait in anticipation) Step 4: realize you were wrong (dammit!)