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A 10-8 BAND 75% WINNING TRADE

Here is a trade that you can take in addition to the 2 bar trade
This trade is a shorter term trade, but has a higher winning percentage
It is supposed to be 75% accurate

THE 5 BAR BUY TRADE

When the market trades 5 consecutive bars above the bands
That is a sign of exceptional strength and a buy signal

THE ENTRY SIGNAL

We can either buy on the close of the 5th day
Or buy on the open the next day

THE EXIT TARGET

We take the highest high of the 5 consecutive bars
Subtract the lowest low of the 5 consecutive bars

Add that difference to the highest high of the bars
That is the sell target

When the market hits the target - take the profit !!!!!
The stop if wrong is a close below the low of the 5 bars

The below is an hourly chart of Cocoa

THE 5 BAR SELL SIGNAL - A 75% ACCURATE TRADE

When the market trades 5 consecutive bars below the 10-8 bands
That is a sign of exceptional strength and a sell signal

THE ENTRY SIGNAL

We can either sell on the close of the 5th day
Or sell on the open the next day - (day ^)

THE EXIT TARGET

We take the highest high of the 5 consecutive bars below the bands
Subtract the lowest low of the 5 consecutive bars

Add that difference to the lowest low of the 5 bars below the bands
That is the buy back target - to close the trade

When the market hits the target - take the profit !!!!!
The stop if wrong is a close above the high of the 5 bars

To sum it up, this is a 75% accurate trade
When the market is in a downtrend
And then closes 5 consecutive full bars above the 10-8 bands
That suggests there is going to be follow thru on the upside

The buy signal is to buy on the close of the 5th bar above the bands
Or on the open the next day

The stop if wrong is a close below the low of the 5 consecutive bars

To get a take profits target
#1 - Take the high of the 5 consecutive bars above the 10-8 bands
#2 - Subtract the low of the 5 consecutive bars above the 10-8 bands
#3 - Add that difference to the high of the 5 consecutive bars
#4 - Take profits when that number is it
#5 - Don't think about it - take profits

SELL SIGNALS ARE EXACTLY THE SAME RULES ON THE DOWNSIDE

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IMPORTANT NOTE

It is the first 5 consecutive bars above the bands after a downtrend
That has the highest accuracy

If the market gives you a 5 bar buy trade - then corrects back to the bands
Then trades back above the bands for 5 consecutive bars
That would probably still be a winning trade
But the accuracy goes down

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SOMETHING ELSE TO THINK ABOUT

So the 5 bar is a higher percentage winning trade
You could decide to totally skip the 2 bar trade

Only trade the 5 bar trade
And when the 5 bar got to the take profits target
Move the stop if wrong up to breakeven - or a little higher

You might get stopped out of a few more winning trades
Than with the 2 bar system - because you are entering the trade a little later

The earlier 2 bar entry gives us a little more holding power

But you could take the 5 bar trade
And that could be your system - always skipping the 2 bars trades

Hey it's your system
Be creative and think outside the box - as they say

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