How are you?
How is it going with Hulk Smash Scanner? I hope you generate some profits...
Today I want to show you a tool, which will help you decide whether to enter a trade, based on an alert from the Hulk Scanner.
This tool will serve as a filter to help you decide how strong the alerts from the scanner are.
In the future, I plan to insert it in a structured format for the scanner.
This tool is the good old basic Bollinger bands’ indicator.
So what is the Bollinger Bands indicator?
It is a tool created by John Bollinger (born 1950)
This tool examines the standard deviations in the market in order to detect situations of anomalies that increase the probability of the trend reversal. The Bollinger Bands are a technical analysis tool defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average (along with the last 20 time units) of the asset’s price.
And what does it look like?
The basic strategy with the Bollinger Bands tells that when the Japanese candlestick breaks the upper band, the following candlesticks will go down, returning towards the moving average – and vice versa with the lower band.
With this tool, we can be more accurate in entering trades.
When we receive an alert from the Hulk Scanner, we will enter only trades with a high probability of success and by ignoring the other alerts, we will be more profitable.
How to put the Bollinger Bands indicator on a chart?
Press insert -> indcators -> Trend -> bolinger bands
We will get the next screen and press OK
And so the Bollinger bands will appear on the graph along with the Hulk Scanner’s alerts
So how do we improve our trade entries, using the Bollinger Bands indicator, when we get an alert from Hulk?
For example, when the alert is LONG, we have to
see if the candle is below the moving average (middle band).
If it is under the middle band or even crossed the lower band and returned up, then go into a long trade
A concrete example
Short and Long Trades
The alert for Long is obtained when the pattern is under the middle band, so it is good to enter a trade.
An example of an alert, which should be skipped:
As you can see the alert for Short is obtained when a pattern is at the middle band. In this case, we will not enter a trade
Example of a short trade (a great trade, by the way)