On top of these levels I will give each day Trend line levels, Fibonacci or Order flow levels. I will publish on Discord and Twitter – These levels are an indication of where I think the market has to make a decision.  Once we have established levels, we then look at the charts to determine if we wish to trade at the published levels. We look at the charts, Bollinger Bands to determine if at any of these levels the market is at short term, medium term or long-term resistance / support. If it is and we believe that there will be a continuation of a trend or reversal we then take a trade.

 

Points to Remember   

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1. We do not trade intra band meaning if price is between 2SD & 3SD then we don’t trade, we wait until a band has confirmed support or resistance

2. We look for a confluence of set ups i.e. a band touch and high RSI for resistance and low RSI for support across multiple time frames such as 5 min &10 min and 1 hour or 5 min,15 min and hourly. We also look at candles or moving averages such as the 5 / 50 period SMA and candles to determine if there any patterns that can guide us as well as order flow levels. This then becomes a high probability set up.

3. We also look across other instruments such as NQ & DOW to see if they are at certain resistance / support levels

4. We need to know if the price is coming from above to find support or from below as resistance   

5. The bigger the time frame i.e. 4hr, Daily or Weekly the more likely the market will pause find support or resistance. So, if we see the daily and 1 hourly chart showing low RSI and 2SD or 3SD band touch it is more and likely to find support or at least allow for an escape hatch / break even trade.

6. For short term price movement, we look at the 5 min and hourly bands, if price is held or coming from above to touch the mid bands and cannot penetrate the 5 min or hourly mid band then it is demonstrating support to the market and thus it’s a buying opportunity.   

7. Conversely if price is coming from below and cannot penetrate the 5 min or hourly mid band then it is demonstrating resistance to the market and thus it’s a selling opportunity.   

8. Trend days. Trends days can be quite nasty for Bollinger Bands on lower time frame such as the 5 min. This is because it will usually just keep penetrating / pushing the 5 min / 10 min 2 SD or 3SD lower or higher, then a small move back and then as soon as we have a new 5 min / 10 min candle it goes for it again. The rules for a trend day are we make 2 trades and if this fails, we wait for a pullback (Higher low or Lower high) and go with the trend. To determine if it’s a trend day after the first hour of trading if the price is consistently above or below the 5 SMA on the 5 min, 10 min or hourly this will usually confirm the day as a trend day.

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Note below in the examples I have said the 5 Day SMA when I actually meant the 5 period SMA 

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