The BANANA Technique [The Trading Course]

[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

 

 

Further to the above

A good setup may look like a good setup on m1, but sometimes, its a TALL Trading range on the M5. I try to avoid these. 
e.g. The DAX today was relatively weaker setup than the NAS even thought it was before the US open. 

HEre is DAX 
https://www.screencast.com/t/shevOCDRDcU


compare the above to this NAS m5 chart. It is Going up. there are no levels to the left. Its BEAUTIFUL 

Nothing to the LEFT 
https://www.screencast.com/t/FgVbBqXI

 

[immy]

I use these 7 questions to eliminate noise and select the most profitable trading signals. 

Read this blog post here https://itradeaims.net/7-questions/

[immy]

Sometimes the context is right but the signal candle has a wider range. If you decide to not take it, you might be giving away good opportunities. 


In the chart below you see an excellent breakout but signal cnadle has a wide range. 

On a signal like this when the context is right but candle range is big and has a wick, don't enter below the low, instead enter at the close of the signal candle or open of the next candle.

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

[immy]

Hi

I have updated the Rules for the Banana Strategy. Please visit the First post of this topic.

Cheers 

[tombacon89]

Thanks immy.  

I note in the trade management post there are let’s say variable exits due to ATR. Please can you clarify where to get this information from when looking at the chart? Am I right in thinking this is the average true range (size) of the last X candles?

Stop Loss -1R (Range of Candle)
BreakEven: Move SL to BE at +1R
Target Point: 

If Stop Loss is less than 1ATR then go for 2R Target. 

If Stop Loss is more than 1ATR then go for 1ATR which is the 1R target.

If Entry is based on a tight Micro Pullback then go for 1:1 or 1:1.5 Target.

Cheers

[immy]

Thanks immy.  

I note in the trade management post there are let’s say variable exits due to ATR. Please can you clarify where to get this information from when looking at the chart? Am I right in thinking this is the average true range (size) of the last X candles?

Stop Loss -1R (Range of Candle)
BreakEven: Move SL to BE at +1R
Target Point: 

If Stop Loss is less than 1ATR then go for 2R Target. 

If Stop Loss is more than 1ATR then go for 1ATR which is the 1R target.

If Entry is based on a tight Micro Pullback then go for 1:1 or 1:1.5 Target.

Cheers

 

HI Tom

Sure, let me clarify this. 

Firstly, this trade management is for Stage 3 onwards. We will follow the 1:1 or 1:2 TP for sages 1 and 2 which ever you chose you gotta stick to that. 

Having said, that, when volatility rises, sometimes you will see big bars.

12 Stop Loss As normal: 
Suppose, DAX during normal volatility times (whatever is normal is relative) has 12 ATR (60) or ATR (20) during open session.  For that you would definitely filter a signal that is more than 15 pips. Because you will then need the pair to move 3ATRs in your favour before it hits your 2R Target.

24 Stop Loss Signal During a 24 ATR Times: So if today volatility has doubled, your 12 or 15SL will not last, however if you took the trade and it happens to be a trade which does not drawdown at all, yo will find that your target point gets hit far too easily and then you will see market moving far more than that. 

If you see a 20SL Signal within 12ATR: 
Now if you see a 20SL signal and ATR is 12, you really have to think hard before you take this signal. Sometimes, the market is giving a very good signal, and if you want to take it, then you know that if you took it, it will be very hard for the market to hit your 2ATR target. So if the setup is a high probability cute setup you will take it but reduce ATR to 1 or 1.5 because there is a higher chance of success but lower chance of 2ATR move. 

hope this makes sense. 

[immy]

Here is an example of a Break and Retest Banana Setup. 

This is my favorite entry technique. 


Understand the context of this entry setup, and practice trading it.

If you master this, you will not need anything else.

It's a high probability entry method. 

You can use it on Cryptos, Forex, Stocks, Indices, or anything that you can show as a chart. 

Trade it on chart any time frame you like. Monthlies, all the way to the tick chart. 

https://www.screencast.com/t/HVW5EKnRTga

[immy]

[immy]

I hit the post button after working on this post for 30 minutes and lost it

[immy]

Here are a couple of trades I would love to take whenever the market allows me to. The Momentum breakout technique is my second favourite after the banana signal. 

https://www.screencast.com/t/oHEK2R0JeP