Charlie presentation 2

1. Winning mindset for trading

2. Winning mindset
• This presentation was going to cover mindset
but....
• So we are going to run through some
techniques I use instead....

3. The bands

4. The bands
• The bands can be used in a variety of ways;
• Trend.
• Counter-trend.
• Breakouts.

5. The bands

6. The bands
• This utilises 2 moving averages but in a slightly
different way to normal.
• We are going to use a 5 period exponential
moving average twice!
• Instead of the moving average set to the
closing price....
• We will place one 5ema set against the low
price and one 5ema set against the high price.
• It will then make your chart look like this...

7. The bands

8. The bands
• So we are looking for certain instances to buy
when price hits the lower band when the
overall trend is up
• We are looking for certain instances to sell
when price hits the upper band when the
overall trend is down.

9. The bands

10. The bands
• Rules for buying (long plays).
• Price making higher highs.
• Price needs to be above the 50sma.
• After a fresh cross of the 8 and 20sma’s.
• Look for the first time price pulls back to test the
lower band.
• Buy when the lower band is hit.
• Place stop based on either of the following; prior
low, below 20sma or based on the ATR multiple.
• Profit zone is the previous high or above....

11. The bands
• You can wait for a reversal (conservative
approach) and then buy.
• In this instance you would place stop loss
order below the most recent low.

12. The bands

13. The bands
• Rules for selling (short plays).
• Price making lower lows.
• Price needs to be below the 50sma.
• After a fresh cross of the 8 and 20sma’s.
• Look for the first time price pulls back to test the
upper band.
• Sell when the upper band is hit.
• Place stop based on either of the following; prior
high, above 20sma or based on the ATR multiple.
• Profit zone is the previous low or below....

14. The bands
• Rules for selling (short plays).
• Price making lower lows.
• Price needs to be below the 50sma.
• After a fresh cross of the 8 and 20sma’s.
• Look for the first time price pulls back to test the
upper band.
• Sell when the upper band is hit.
• Place stop based on either of the following; prior
high, above 20sma or based on the ATR multiple.
• Profit zone is the previous low or below....

15. The bands

16. The bands
• Variations of rules.
• Price not making higher highs etc.
• Profit target static at 1:2 risk reward.
• Wider stops.
• Subsequent tests?
• Moving stop loss to break even once price has
moved so far.
• Using different timeframes.

17. Overlaying the MACD

18. Overlaying MACD
• We’ve run through the basic principles of the
bands.
• Where they become more powerful is where
lined up with MACD.
• Use the higher timeframe MACD in line with the
bands.
• So if taking a 15 minute band play, we want the
hourly MACD histogram to be in line....
• If taking an hourly band , we want the 4 hour
MACD to be in line....

19. Overlaying MACD

20. Overlaying MACD

21. Overlaying MACD
• We want the higher timeframe
confirmation....

22. Overlaying MACD

23. Overlaying MACD

24. Overlaying MACD
• Plus we would prefer the trend to be in line
too....

25. Overlaying MACD

26. Overlaying MACD

27. Overlaying MACD
• We won’t always have everything lined up
from a trend perspective so that comes down
to reading the overall market.
• Let’s look at some live charts...

28. Counter-trend bands

29. Counter-trend bands
• It’s worth noting the odds on daily charts...
• Once price closes back inside the bands, there’s around
a 65% probability of it going on to test the opposite
band.
• This is useful information.
• More so when we are looking at the higher timeframes
and then using that info to help us with our trade.
• Let’s first look at how we can use the bands for
counter-trend entries...
• Remember, it maybe counter-trend on one timeframe
but....

30. Counter-trend bands

31. Counter-trend bands

32. Counter-trend bands
• Is this really counter-trend?

33. Counter-trend bands

34. Counter-trend bands

35. Counter-trend bands
• When looking at a counter-trend trade, wait
for price to close back inside the bands first.
• Saves trying to catch the bottom.
• So if price pulling into a key support zone on
an hourly chart, why not wait for a close inside
the 5 or 15 minute bands before entering?
• RSI divergences....

36. Counter-trend bands

37. Counter-trend bands

38. Counter-trend bands

39. Counter-trend bands
• So we can use the bands as a pure trend
pullback approach but also if looking to go
counter trend.
• Let’s look at some live charts....

40. Final thoughts....
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