Sammy Y has replied what I would! Thanks.
Yes, discipline is the key. I use BB and no Gann, very initially I was using Gann on the levels of candle touching the BB top or bottom. Gradually I realised that my target was just 10 points and can simplify my set up so dropped Gann.
Ashish, as I said before, you start getting the hang of it as you continue to trade. Its good to look at price moves that breach the Upper BB and then revert to the MA. Mostly they give us our small target. However now I at times do not strictly want the Upper BB to be breached in a few situations : Say, BB has widened , price moves say within a point or two of the Upper BB and then reverts to move towards the mean, I take short trade. Though I advocate that initially WAIT for the candle to breach the upper BB just to test your resolve not to trade till it does, to harden your discipline.
My Entry Stop Loss is 20 points or high of the candle touching the upper BB plus filter , which ever is more but I change it rapidly as the trade progresses.
HMP, with my limited Technical analysis knowledge, let me try to explain my strategy :
BBs are volatality based indicators where price move to extremes and revert to the 'mean' which in this case is the 20 period MA used for plotting the deviation bands! Price moves in its direction up or down and continues the move till it faces resistance ! Then it tends to move towards the mean. We need to catch this move towards the mean as early. When the price touches the upper band we are looking for a price to close inside the band. If the price continues in its direction we are waiting, when it shows exhaustion we enter the trade and take our target. As our target is small we have more profitable trades than loosing ! So for me price keeps its direction till it is walking the band, and when it leaves the band and move towards the MA, we latch on to it for a short journey of 10 points!
Though did not mention it here just not to complicate the system, but I do use the MA too in a failure trade to minimise or reverse my trade.
My suggestion would still be : If you are convinced looking at historical charts that you can make 10 points in crude in a day, trade it for just 10 points only for 10 sessions ! Trade it for 10 points but track the RT chart full time and note the other trades on paper. Watch how the BBs are behaving, what is your reaction to the price moves. If by end of 10 sessions you successfully traded 10 points and paper traded another minimum ten more, for next 20 sessions trade for 20 points (10X2 trades) and continue with your paper trade exercise. If not successful revert back to trading just 10 points a day for 10 sessions and so on!
If successful in trading 20 sessions for 20 points for next 10 sessions trade ALL trades you see ! Check yourself, are you comfortable trading full time, or less, all this analysis shall be individual's own ! Amend your trade timing , trade numbers as per your own comfort level.
In short, move like a marathon runner and not like a 100 meter sprint! Increase your pace gradually and if at any time you feel exhausted because you took off fast, return to the starting point to start the race all over again at a most leisurly pace!
Discipline is the key !
