welcome to this video about swing trading the stock market using bollinger bands
and today I'm going to show you a very very simple technique and I like this it
works it's about the simplest thing you're ever going to learn so let's just
jump right into it without any further video so here is the point first of all
look over here at the top and you'll see that i'm using bollinger bands with the
settings of two and 14. Different people use different settings but that's
what I use for this technique and it's very simple it's basically a stock market swing trading technique
that finds markets that have gone into an extreme extension of an impulse move
so we're looking for exhaustion it's basically an exhaustion pattern and it
doesn't show up super frequently but when it does show up it's usually pretty
good
and here's what it is it's very simple the real body of the candle gets outside
of the Bollinger Band in the stock market.
so in this case it gets below the lower Bollinger Band
now I like to have the real body that means the entire green or in this case
the entire red here we have two bars outside of the Bollinger Band on this swing trading setup.I don't
care about the wicks where the shadows that could be touching but i do want the
real bodies outside now this is not a trend trade
this is a quick little scalp trade there's basically two types of
categories of trades
I guess you could say there's more category but to the most popular our
trend trading and reversion trading this is more of a reversion and this
well I don't really use the middle Bollinger Band this is the 15 EMA up
here and it's just looking for it to revert back to a mean reversion to the
mean type of thing
ok and eventually does get over to the 15 EMA over there
so that's it
but that's so simple let's look at a few other examples here not again we get
another one
I can go outside the Bollinger Band hope to take the red one west - lets see
yeah and and then it comes back down by the way the thicker line that's red and
green that's the 50 ma
so sometimes we'll report back to that as well all right
by the way I'm one way to use this you see the moves are not real big normally
sometimes they will be but normally i wouldn't expect it
so again it's an exhausting pattern and a reversion to the mean
now you can test different moving averages if you'd like to
these are the ones that I use 15 EMA in the 50s ma and one way I like to trade
this is for swing trading as the title indicates so this is a great thing if
you want to scan for markets set up your scanner to look for markets where
basically what you could do is the open and close is greater than you know the
bullet train at that setting
okay sometimes like this is just barely touching I'll still take it by the way
sure somebody who noticed that ok ok here's another one
so you can see about how often it sets up this is a daily chart but if you're
scanning the market all the stocks in the stock market then you know you'll
find a bunch of these
so there we go the entire real body of the candle is below the Bollinger Band
and what to do
the traces back to the mean and then after that it just kind of go sideways
goes choppy so that's it that's your trade
I like to do this with options by the way that's what I prefer to do doesn't
mean you should do it but it's got a little quick option trade like it's just
a swing trade you know
swing trading originally meant just two or three days and that's kind of how I
look at this as well very short term little kind of scalp trades if you will
find some more here just scrolling through so we're not sure he picking
there we go there's another one this red bar is entirely below the Bollinger Band
and it kind of hesitates a little bit but it's very gets back up to the 15 EMA
sure enough it does so that one work let's see let's try to find some more
here for you
oh wow good here's one how is a good but actually I do like this
so here's one that did not work right this one here you see the entire real
body is below the lower Bollinger Band that one did not work for our purposes
does not revert back to the mean
in fact it's an important that just keeps going down right so that's good to
see
I actually like to in my courses i always show examples of trades that I
teach that didn't work out because i want you to get that in your brain cells
that nothing works all the time I don't want you to false expectations are
unrealistic expectation i want you to see the times that things don't work
ok that's it for that child let's bring up another market
okay so yeah there we go all right I'm here we go again let's see here so
here's one and that one worked out real nice actually
that's part of a trend and so that worked out real good
let's find another one may be missing some here so I'm just going through it
real quickly might see some that I don't
Oh actually see one over there i missed em so there's one right there and that's
also what a WAV file now that actually prompts me to these last two examples
possibly to remind you of something else you want to use this in conjunction with
other things that you've learned
so support resistance cycles trend a candlestick pattern so we're going to
get a nice reversal candlestick pattern down here obviously that's going to
answer the probability of success
here's another big one all right so that one again completely is outside of the
Bollinger Bands reverts exactly back to the 15 EMA
so this is a little um golden nugget for you really
I find this to be very effective and you're not going to see it too much when
the markets doing that contraction or consolidation of course
actually yeah funny just said that and it starts to break out of consolidation
we get a little one there and sure enough boom respect to the 15 EMA
remember this is just a scalp trade on TVs for long-term they're normally not
that and that is all she wrote well there might be a little one right there
- okay so um you know that's it it's pretty simple like I say I would play
any other knowledge that you know but um we like to use this is to scan for these
i use stock vector dot com and stock picture even know
by the way material connection with stock picture so that's a good one but
there's many good scanners out there and you can program this in I don't have it
for you so you can just you know whichever program you use you have to
use that programming language had on a programming language for all the
different scammers obviously stock treachery just write in English that's
why a hike is another programmer so if you like this video you're watching on
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also i'm giving away another one of my favorite on trade strategies it takes a
little more than just six minutes to teach though this one takes about twenty
six minutes and very very good win-loss ratio called the rubber band trade and
you can get it absolutely free by clicking on the image in the top left
corner or if you're on a mobile device clicking the eye with a circle around
the top right hand corner of this video if you're not watching this video on
YouTube then there's probably a link below or an opt-in form on the side
once you do one of those things I'll personally email the video to you and
you can start enjoying it and as it as my total gift to you
yeah