The BANANA Technique [The Trading Course]

[immy]

I am always looking for the highest probability yet a little exciting way of trading. 

This indicator is certainly proving to be a very good way of achieving two things 

1. Objectively taking trades based on a statistically proven entry method
2. Staying 100% disciplined by ONLY taking signals and no discretionary trades. 

This final (I hope) update will have 2 more options towards SAFETY.

First: an option for H1/M5 and H1/M15 setups. 

When we trade this concept we only trade in line with the h1 trend. So like my grandma used to say 

"Don't put out honey (sweets) out in the open and complain about flies". .... COVER IT!!!

Why should we tempt ourselves with signals on the m5 or m15 time frames that are against the h1 trend? 

Second: Sometimes the pullback candle is a strong bearish candle within a bullish setup or a strong bullish candle within a bear setup. Those candles are iffy. Why tempt me to signals that I won't take? 


Here are some examples 

EU H1 Chart: The trend filter has no effect on h1 chart. It does not check h4 or d1. here the trader decides if its a trading range or a trend. Whether its time to drop to m5 or m15 or not is the trader's discretion. 

EU H1.png

 The following pictures are of the M5 chart at the same time as the above chart. 

You will see bullish signals have been eliminated. 

CONFIRMATION CANDLE: You will also see that when candles are not bearish they won't be shown as bearish signals or bullish. 

 

EU M5.png

 

Counter Trend M5.png

 

 
 

[immy]

[immy]

I have updated the first post of this topic. I have made changes to the Instruments, Time Frames, and Sessions Section of my trading plan. 

[immy]

If you still don't have access to V9.3 that is because it's only available in the DIscord server. So go and log in and download it from the pinned messages

https://www.screencast.com/t/MkX4vO40x


 

[mingyuliang]

Hi @immy,
"When to Trade M15: When H1 has a trend candle and trending cleanly, I will take a signal on m15"

for my understanding,  if there is a H1 trend candle, we need drop to m5 to look for banana singals to catch the trend between the 2 H1 candles.
why do we need drop to m15?  is it because if there are more than 5 pullback candles on m5, we change the timeframe to m15 to get 1-5 pullback candles?

Thanks,
Milo

[immy]

Hi @immy,
"When to Trade M15: When H1 has a trend candle and trending cleanly, I will take a signal on m15"

for my understanding,  if there is a H1 trend candle, we need drop to m5 to look for banana singals to catch the trend between the 2 H1 candles.
why do we need drop to m15?  is it because if there are more than 5 pullback candles on m5, we change the timeframe to m15 to get 1-5 pullback candles?

Thanks,
Milo

 

Hi Milo

It's upto you whether you wan to follow the H1/M15 or H1/M5 method. 

The method is the same for m5 TC and M1 pullback or H1 TC and M15 or M5 Pullback. 

Hope this makes sense 


 

[immy]

You don't want the market to be moving like this .... this is US30 M5.... ... Check out the lines... they are all over the place... the swings have to know a series of higher highs or lower lows...

https://www.screencast.com/t/HE0ThjqjMj


The Point... is ... if you choose to trade with the trend, then you must have an excellent mechanism to help you understand and work with the TREND.

https://www.screencast.com/t/8gR1x7zsYDD


The NAS had a good NEOBOT

Check how it BROKE-OUT right at the open. No levels to the left that made me rethink it because the force of the move down was strong. 

https://www.screencast.com/t/TwWSHL9n


The Trend Candles are BREAKOUT Phases on the lower time frame. 

When you see a proper trend candle. It itself is a one candle BREAKOUt. Underneath it, you'll find a series of trend candles creating a breakout phase made of multiple TC's or it will have a TIGHT bull/bear channel. 

https://www.screencast.com/t/ia7qyiZOoeF


Hope this clarifies a few more points.

ps: I promise I will be creating a NEW Course on this method of trading. 

[immy]

This is Our Setup.... Memorise it... Momentum Breakouts.... we are Momentum Trend Traders... simple
https://www.screencast.com/t/O2XaGGRF

[immy]

If you're wondering whether you could add the Banana Indicator to the Setup 1 Template, worry not. Its absolutely fine. 

In fact, if you understand the 10s Elliott Waves and the Setup 1, then you have a great advantage. 

Wait for a Setup 1, wait for it to break into a Wave 5, then take the banana signal on the First Pullback. 

Also, you can wait for fora TIGHT setup 0 or Classic Breakout situation where there is no wave count. 

Wait for a Breakout, then take Banana on the first or second pullback. 

E.g. this Example of NZD/CAD on the daily chart. You see move down, then a trading range, all lines touch, then it breaks out. I have marked entry spots. 

https://www.screencast.com/t/qHQ8OnmfBE


Now let's look at this chart using the Setup 1 Template in TradingView. 
https://www.screencast.com/t/0Lg9iKlPIN

[immy]

This chart shows how to trade the banana signals ... the HIGH quality Signal

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




Now let's look at M5 to further understand why this is a HIGH-quality signal 

https://www.screencast.com/t/ZQ77wQOMagd


and now lets look at 2nd or 3rd pullback ... all trade worthy 

https://www.screencast.com/t/cIDnwl7Q