The BANANA Technique [The Trading Course]

[immy]

IN the chart below of USD/JPY i have marked an impulse move that can be considered too climactic. We don't really like to trade a pullback after this kind of moves. 

https://www.screencast.com/t/29C9VHIH


 

[immy]

Below I have marked the Chart of USD/JPY H1 to show some impulse moves followed by what may or may not be pullback setups? What do you think? 

https://www.screencast.com/t/MK91UU5niKM

[immy]

Below I have shown a breakout setup and a nice pullback but wrong time of the day. Don't take these. Wait for the fresh session. 

https://www.screencast.com/t/4Ka7Hpk9MbcV

[immy]

here some more examples with critical questions 

https://www.screencast.com/t/bqfxBfjwZs

[mingyuliang]

Hi Immy, could you please explain the banana signal from the point of price action?
for example:  seed is an inside bar, cherry is a reverse bar.
because I only trade stocks with interactive brokers, the MT4 banana indicator is useless for me.

Thanks,
Milo



 

Hey Milo

Good question. 

The banana is the based on the core concept behind the Hunt method. It is a code that simply Looks for a pullback situation. 
The Seed is an INSIDE Candle/BAr formation whereas Cherry is a candle formation that depicts some sort of rejection and indicates possible resumptio nof trend and end of correction / pullback. The banana is the bit of the code that is checked before the code for the SEED and Cherry is check. e.g. a SEED is an inside candle plus banana. Likewise the cherry must first conform to the banana concept then it becomes the cherry. 

But a banana will be a banana even if there is NO Confirmation candle formation such as Seed or banana. 

E.g. the a Bullish Banana Signal will alert you regardless of the candle formation. It looks for Is the Current high lower than the previous high and is the current low lower than the previous high and then in addition to that it has the option of applying further filters. Such as if the close is above the 10ema and 10 is above 20 and 20 is above 100. All of these filters can be modified in the settings. 

You can find more about how to use it on the blog ... https://itradeaims.net/aims-the-hunt-2- ... indicator/
The banana concept was born out of the experiments with the KC Method 
https://itradeaims.net/kc-method-step-by-step-guide/

Hope this helps 


 

The banana is an alert mechanism. Whenever there is a pullback situation it will print an alert on your screen. The Banana is a PRE Cherry Signal. It warns you before there will be a confirmation signal like cherry. 

How to Use Bananas a Trading Signal Only:  
To use BANANA as a confirmation signal only then make sure you turn option "Filter_CounterBars" set to true. Then it will not alert you simply because there was a pullback. 

I like the banana to alert me about pullbacks from where there are at the least 2 candles that pulled back. You can change it 1 or 3 bars by changing the Option "Number_of_Bars" to 1 2 or 3 in the Settings. 

 

Hi immy,

Thanks for your explanation, it helps me a lot.

Milo

 

[immy]

On your Given Time Frame : 

when the price is above 10 and 10 is above 20, the trend is up. 

When the price is below 10 and 10 is below 20, the trend is down. 

[immy]

How to Use the 10/20 for Single and double legged pullback signals 

For clean simple pullback and momentum entries, measure price in relation to 10-ema 
https://www.screencast.com/t/p7GVaO7jZS


Another example on EUR/USD M5 Chart : Single clean pullback toward 10ema
https://www.screencast.com/t/erVXGRwnL


For 2 legged and deeper pullbacks, measure price in relation to 20ema. 


 
The Two Legged Pull back and 20 EMA 
https://www.screencast.com/t/7l6mmNWkiLfi

 
 

[immy]

[immy]

 There is an Update to the 1 Candle Banana Signal. 

It's very interesting 

You will see Grey 1 C Signal which means, don't trade yet (probably) but be ready for 2.
When there is a 1 candle pullback we don't want to trade it yet, in most cases. 

So grey 1 will serve as Early Warning 
But there will be a tradeable BLUE 1. 

The blue/red 1 signal means 

for a Blue Signal
The current candle is a 1 candle pullback with low lower than the previous candle. and high lower than the previous candle. 
It also means, the previous candle is a Bearish Candle and its high is higher than the candle previous to it.

Here is the BLUE 1 Candle Pullback. 

The blue signal is sometimes tradeable. IT is also useful for when you see a 2 legged pullback. 

Blue 1C Logic.png

 
The Grey 1 Candle pullback signal shows a simple 1 candle pullback. No further qualifications. It's a mechanism for us to get ready for a possible 2, which is tradeable. 


 

Grey 1C Logic.png

 
 
 

[immy]

 There is an Update to the 1 Candle Banana Signal. 

It's very interesting 

You will see Grey 1 C Signal which means, don't trade yet (probably) but be ready for 2.
When there is a 1 candle pullback we don't want to trade it yet, in most cases. 

So grey 1 will serve as Early Warning 
But there will be a tradeable BLUE 1. 

The blue/red 1 signal means 

for a Blue Signal
The current candle is a 1 candle pullback with low lower than the previous candle. and high lower than the previous candle. 
It also means, the previous candle is a Bearish Candle and its high is higher than the candle previous to it.

Here is the BLUE 1 Candle Pullback. 

The blue signal is sometimes tradeable. IT is also useful for when you see a 2 legged pullback. Blue 1C Logic.png
 
The Grey 1 Candle pullback signal shows a simple 1 candle pullback. No further qualifications. It's a mechanism for us to get ready for a possible 2, which is tradeable. 


 Grey 1C Logic.png
 
 
 





 

The Blue 1 Candle Pullback is trade-worthy. 

Blue 1C Logic example.png

 
 
These Blue signals are all worth trading but they also serve as a pre-warning for 2,3 and 4 signals. 
 

Blue 1C Logic example 2.png

 
Today on DAX the Grey Signal got you ready for a possible signal. 
 

Grey 1C Logic a.png