Magic Bands Scalp Trading Strategy as at November 23, 2014

The Magic Bands Scalp trading strategy will do well again this week for trend traders who are patient enough to find a trending market.

The tip off to a trade entry for this system is the crossing of the 15 BB and the 50 BB.

Probably a trader will want to have several charts open so as to be able to be in the market as different  currency pairs are trending at different times throughout the trading day

I have three charts below from Friday past.

Entries are best in the Magic Bands scalp system when there is a slope to the trend lines, the Bollinger Bands.

Personally I do my best to avoid the choppy periods with no slope to the lines..... I have had terrible experiences trading in chop. lol

Good Trading..!

Magic Bands Scalp Trading Strategy As As November 21, 2014

There was good volatility in the Forex markets today and some excellent opportunities using this simple strategy.

Let's review a couple charts.

First is AUDUSD, you can see a nice move up and then a gradual move down, two simple entries for profit.

Next is EURGBP. There was a nice bearish entry and then another on a retrace. It is important to  be sure that there is a slope on the 15 Bollinger Band and preferably on both sets of Bollinger Bands. This will keep you out of the chop.

GBPUSD. There were a couple bear entries, the second one being after a retrace. Once those two were finished, the next couple  of the potential entries were suspect based on the slope of the BB lines.

I have several more charts below, that you can observe..... note that the best entries have a good slope on the Bollinger Bands.

USDCHF Once the long move finishes the Bollinger Bands flatten out.. close the trade and look for another trade, avoid consolidations and ranging markets with this system. There are many opportunities daily with this system on different currency pairs

On the AUDCHF, once the price retraces to the 50 Bollinger Bands, it is time to get out of this pair and look for another pair to trade. There is no value to trading in the choppy market, it usually ends up in a loss.

CADCHF  Once the long entry retraces.... get out of this pair and look for another entry on another pair...  Stay away from the consolidation periods!

As mentioned, most important is the slope of the Bollinger Bands. There are enough entries available on different pairs that we can pick and choose and be selective as to the entries we take.

In order to be able monitor several pairs for trade opportunity I have a moving average crossover alert set for the 15 crossing the 50, That allows me to be aware of what is happening on different currency pairs as the day passes.

Again, a stop loss is important in this type of trading, I use a trailing stop as well.

Next week we will probably see more volatility in the markets and many resultant opportunities for this simple trading strategy.

Good Trading..!!

Magic Bands Scalp Trading Strategy as at November 17, 2014

With some volatility in the currency markets today there were many opportunities for profits on the 5 minute charts using the Magic Bands Scalp Strategy.

I have prepared a brief video showing potential trades that occurred today.

Magic Bands is a simple trend following strategy using Bollinger Bands and a Bollinger Bands Stops indicator.

The Magic Bands Scalp Strategy is excellent for Forex trading due to the trends in Forex currency pairs.









More information re Magic Bands Scalp Strategy

Magic Bands Scalp Trading Strategy

This Magic Bands strategy is a trend following trading strategy which allows the user to work with fast charts like five minute and have reasonable confidence in the system.

The system uses Bollinger Bands and Bollinger Bands Stop indicators.

The Bollinger Bands are used to detect trend, there are two sets of Bollinger Band indicators on the chart.

The Bollinger Bands settings are as follows:

50, 0.05

15, 0.05

This gives and effect similar to using two moving averages, but a little wider.

The settings for the Bollinger Bands Stop indicator are 16,2

The setup for short entry will be when the Bbstop is above the price bars, the price is below the 15 Bollinger Bands as well as both are below the 50 Bollinger Bands.

The long entry will be available when price bars are above the Bbstop as well the 15 Bollinger Bands are above the 50 Bollinger Bands.

Note: Because this is a trend following system, it is best to ensure that there is a slope to the Bollinger 50 before entering. This system will be expensive to trade in a range bound market.

Suitable Markets:

• Forex
• Indexes
• Stocks
• Futures
• CFD's

Here are some one minute charts of Google, you can see that there are some nice moves illustrated, Google is quite volatile most days and gives an excellent opportunity for profits

Caution to the trader: The Magic Bands Scalp Strategy is a trend following system, it is most critical that a trend be verified before any entries made.