375# Rubber Band and Bollinger Bands Trading System

9)And the last trade is great.

Two losses, one break-even, and six winners total. Not bad. Now let's look

at some of the trades that weren't taken, and I'll explain why they weren't

valid signals.Yes the green histogram poked out of the black line. However, to make a

valid signal the price would have to touch the upper band or go through it.

Remember, you only have a signal to trade if you get a tag of the upper band

and the green pokes through the black line to the upside, or the price tags the

lower band and the green pokes through the black to the downside.

Here you have a tag of the lower band and the green line has poked out to

the downside lower than the black line. Why is there no trade? Here's the

rule. If the black line is at the zero line (the middle) when the signal occurs,

then the signal is invalid. There is no signal.

Here is another example of the black line being at zero causing the signal to

be invalid.