Here is a brief video I have prepared which explains the Boomerang “4 Step Confirmation” process.
also a written explanation of the method is shown below.
This method is producing excellent results day after day in our Day Traders Action live room on Crude Oil. Make money trading live with Mohan
all the best, Mohan
“Four Step Confirmation Method” for trading Crude Oil on Boomerang Day Trader
1) Watch for a New Trade Channel opening with that candle closing with the arrow showing on the candle….
2) Then Ask: Have the Price Pressure Bands opened up in the direction of the new Trade Channel……
3) If #2 is confirmed then ask: Are the Dynamic Trend Bands within 2 Ticks of a Crossover/Crossunder in line with the new Trade Channel or have they crossed over/under now or are they the same matching color? One or more of these conditions on the Dynamic Trend Bands needs to be occurring in order to move to Trade Entry. In all cases obviously the DTB #1 color needs to match the Trade Channel.
4) Enter Trade: Then with all the above confirmed Trade the next pullback to the Signal Line Dot.
2nd Level Trade Rule: A 2nd level trade within a short term trend move can be taken. The rule is that once the trend is established and prices have moved we want to watch for a counter reversal move that is strong enough to cause Boomerang to produce a counter Trade Channel arrow. Once that occurs if the Dynamic Trend Band #2 has not changed colors we can trade a 2nd level trade when a new reversal back into the trend Trade Channel arrow occurs. Trade at the very next pullback to the Signal line when the dot appears. There are no 3rd level trades to be taken although on occasion they will work out but are higher risk.
Modification Rule: If all the pullbacks to the Signal line have been used up BEFORE there is a Crossover or the DTBs match color, then AFTER a DTB crossover occurs a trade utilizing an entry on the pullback to the Cobra line can be taken within 4-5 candles of the new Crossover candle (there will be an example of this on the video)
Other Rules: 1) Don’t trade a pullback to the Signal line after a “fat channel” has occurred. A “fat channel” is caused by a fast upward surge of spike candles that are normally 4-6 points in length or greater. Stand aside as “fat channels” usually reverse direction.
2) Don’t trade against a Flat Dynamic Trend Band #2
3) On an extended move usually with a 2nd level trade in the middle of the move Do Not trade the first reversal move but wait for the 2nd attempt at reversing.