Bollinger squeeze breakout

Formula

Step 1: band width = upper band - lower band. Step 2: a squeeze is a width in the narrowest fifth of the last 60 candles, and below their middle value. Step 3: there was a squeeze on 1 of the 5 candles before this one. Step 4: this candle is the first to close above the upper band. Then the rule plans a Buy. A first close below the lower band plans a Sell. Step 5: entry = the next candle's open. Step 6: stop = the middle band, but kept between 0.5 x ATR and 1 x ATR from the entry. Step 7: R = entry - stop. Target = entry + 2R. If the next candle opens back past the middle band, the setup is skipped. Step 8: the trade ends at the target, the stop or the day's last close. If 1 candle reaches both, the stop counts. Only 1 trade runs at a time.

Ise kaise padhein

Step 1: band width = upar wala band - neeche wala band. Step 2: squeeze woh width hai jo aakhri 60 candles ki sabse patli 1/5 widths mein ho, aur unki beech wali value se kam ho. Step 3: is candle se pehle ke 5 candles mein se 1 par squeeze tha. Step 4: yeh pehla candle hai jo upar wale band ke upar close hua. Tab rule Buy plan karta hai. Neeche wale band ke neeche pehla close Sell plan karta hai. Step 5: entry = agle candle ka open. Step 6: stop = beech wala band, par entry se 0.5 x ATR aur 1 x ATR ke beech rakha jaata hai. Step 7: R = entry - stop. Target = entry + 2R. Agla candle beech wale band ke paar wapas khule, toh setup chhod diya jaata hai. Step 8: trade target, stop ya din ke aakhri close par khatam hota hai. 1 candle dono chhoo le, toh stop ginte hain. Hamesha sirf 1 trade chalta hai.

Example dekhein. ATR (average true range) haal ke 1 candle ka aam size hai. Maan lein ATR 20 points hai. Beech wala band 25,280 hai, aur agla candle 25,310 par khulta hai. Beech wala band 30 points door hai, jo 1 ATR se zyada hai. Isliye stop 1 ATR par rakha jaata hai, yaani 25,290. R entry aur stop ke beech ki doori hai, isliye R 20 points hai. Target 25,310 + 40 = 25,350 hai. Is rule se trader aise jeet sakta hai. Har jeet 2R hai aur har haar 1R. Isliye 5 mein se sirf 2 trades sahi hon, tab bhi aap aage reh sakte hain. 5 trades lein. 3 stop par -3R dete hain aur 2 target par +4R. Total +1R hai. Jeet ke chance asli squeeze ke baad badhte hain, jab bands saaf patle hon. Band ke bahar close ka intezaar karein, sirf chhoone ka nahi, aur stop wahin rakhein jahan rule ne rakha. Stop lage, toh stop ne apna kaam kiya. Breakout nahi tika, aur nuksaan chhota raha. Yahan high risk level ka matlab tight stop hai. Aam jhatka bhi us tak pahunch sakta hai, isliye stop zyada baar lagta hai. Har nuksaan points mein chhota hota hai. Try karne ke liye Paper Trading kholein aur Indicators mein Bollinger on karein. Patle bands dhundhein, phir unke bahar close. 1 lot ka order dene se pehle 3 daam likh lein.