shandybagusj
New Member
Ever heard of RBBM? It's short for Rubberband Model, a game-changer for traders who've been struggling to turn a profit. We're talking about taking those inconsistent traders and turning them into absolute powerhouses with some serious gains under their belt.
Now, if you've been at this trading game for ages and still haven't seen any green in your account, there are basically two reasons why:
If you're nodding along to the first one, well, I kinda respect your resilience, but let's be real—you're more of a gambling enthusiast than a trader. And hey, no judgment, but maybe the "Trading Made Simple" thread is more your speed.
But if reason number two hits home for you, stick around. There's some good stuff in this thread that might just change your whole trading game. Get ready to see things differently and maybe finally start making those gains you've been dreaming about.
_________________________
Introduction to RBMM
_________________________
The Rubberband Model (RBBM) offers a solid roadmap for understanding how markets work. It's like having a cheat sheet that helps traders make smart choices and estimate market shifts accurately. Once you've got a handle on it, you'll find yourself confidently steering your trades every single day, staying ahead of market trends.
I use the term "Rubberband" to explain how markets move. Think of it like stretching a rubber band – it snaps back when you release it, right? This analogy paints a clear picture in traders' minds, helping them grasp how market dynamics work and making it easier to understand how prices move up and down.
_________________________
Framework
_________________________
In my personal trading experience, I've found that there's no one-size-fits-all approach when it comes to timeframes.
You're free to choose what works best for you, but based on my own journey, here are some recommendations.
Timeframe
Entry Timeframe: 15min
Confluence Timeframe: Daily/4Hour
(dont worry, we will get to these Points)
_________________________
Understanding the Rubberband Model
_________________________
The RBBM breaks down market behavior into three clear phases, much like the different states a rubber band can be in:
1.1: Phase 1 - Default Phase:
Think of this phase as the default setting, like when a rubber band is just sitting there without any tension. In market terms, it's when things are going sideways, without any clear trend one way or the other.
1.2 Phase 2 - Stretched Phase:
Here, the rubber band is being pulled in one direction, much like when a market is on the move in a particular direction. It's when we see a clear trend forming.
1.3 Phase 3 - Bounce Phase:
After being stretched, the rubber band snaps back, and similarly, in the market, we see a reversal or pullback in the opposite direction. This phase marks a shift in the trend or a temporary correction.
In addition to the main phases, there's an intermediary stage, Phase 1.5 (or 3.5) - the Setup Stretch Phase. This acts as a kind of warm-up, giving us hints about direction without fully committing to the tension we see in the later phases. It's like the calm before the storm, signaling potential movement without going all-in just yet.
Weekly Cycle BluePrint
Central to the Rubberband Model is the Weekly Cycle Blueprint, a vital resource for traders navigating market intricacies. This blueprint acts as a roadmap, offering valuable insights into the cyclical patterns and trends that drive market movements throughout the week.
Now armed with an understanding of the various phases, traders can leverage this knowledge to decipher daily market dynamics.
Monday: Phase 1 - Default Phase [DP]
Mondays kick off with traders digesting the weekend's news and events, setting the tone for the week ahead. This period is marked by a scramble to gauge sentiment, resulting in chaotic and unpredictable price movements.
Trading during this phase is strongly advised against. The initial hours of Monday trading are often marred by erratic price action, making it unwise to rush into positions. Moreover, there's a psychological aspect to consider: after a weekend break from trading, there's a temptation to dive back in for a quick dopamine fix from executing trades.
However, giving in to this impulse can spell trouble, leading to impulsive decisions, deviation from trading plans, and overall poor risk management. To counteract these tendencies, it's best to exercise restraint and refrain from active trading on Mondays. Instead, take a passive approach and spend time observing chart patterns. This not only cultivates self-discipline but also reinforces adherence to trading strategies, laying the groundwork for long-term success in navigating market volatility.
Now, if you've been at this trading game for ages and still haven't seen any green in your account, there are basically two reasons why:
- You might just have a weird love for pain, getting a kick out of the struggle more than the cash.
- Or, you've been looking at the market all wrong.
If you're nodding along to the first one, well, I kinda respect your resilience, but let's be real—you're more of a gambling enthusiast than a trader. And hey, no judgment, but maybe the "Trading Made Simple" thread is more your speed.
But if reason number two hits home for you, stick around. There's some good stuff in this thread that might just change your whole trading game. Get ready to see things differently and maybe finally start making those gains you've been dreaming about.
_________________________
Introduction to RBMM
_________________________
The Rubberband Model (RBBM) offers a solid roadmap for understanding how markets work. It's like having a cheat sheet that helps traders make smart choices and estimate market shifts accurately. Once you've got a handle on it, you'll find yourself confidently steering your trades every single day, staying ahead of market trends.
I use the term "Rubberband" to explain how markets move. Think of it like stretching a rubber band – it snaps back when you release it, right? This analogy paints a clear picture in traders' minds, helping them grasp how market dynamics work and making it easier to understand how prices move up and down.
_________________________
Framework
_________________________
In my personal trading experience, I've found that there's no one-size-fits-all approach when it comes to timeframes.
You're free to choose what works best for you, but based on my own journey, here are some recommendations.
Timeframe
Entry Timeframe: 15min
Confluence Timeframe: Daily/4Hour
- Each Week, Phases start anew
- Wait before Monday to pass befor analyzing
- No Indicators are needed (but can be used)
- Not every Week/Instrument will give perfect Cycles. Markets arent perfect. deal with it.
(dont worry, we will get to these Points)
_________________________
Understanding the Rubberband Model
_________________________
The RBBM breaks down market behavior into three clear phases, much like the different states a rubber band can be in:
1.1: Phase 1 - Default Phase:
Think of this phase as the default setting, like when a rubber band is just sitting there without any tension. In market terms, it's when things are going sideways, without any clear trend one way or the other.
1.2 Phase 2 - Stretched Phase:
Here, the rubber band is being pulled in one direction, much like when a market is on the move in a particular direction. It's when we see a clear trend forming.
1.3 Phase 3 - Bounce Phase:
After being stretched, the rubber band snaps back, and similarly, in the market, we see a reversal or pullback in the opposite direction. This phase marks a shift in the trend or a temporary correction.
In addition to the main phases, there's an intermediary stage, Phase 1.5 (or 3.5) - the Setup Stretch Phase. This acts as a kind of warm-up, giving us hints about direction without fully committing to the tension we see in the later phases. It's like the calm before the storm, signaling potential movement without going all-in just yet.
Weekly Cycle BluePrint
Central to the Rubberband Model is the Weekly Cycle Blueprint, a vital resource for traders navigating market intricacies. This blueprint acts as a roadmap, offering valuable insights into the cyclical patterns and trends that drive market movements throughout the week.
Now armed with an understanding of the various phases, traders can leverage this knowledge to decipher daily market dynamics.
Monday: Phase 1 - Default Phase [DP]
Mondays kick off with traders digesting the weekend's news and events, setting the tone for the week ahead. This period is marked by a scramble to gauge sentiment, resulting in chaotic and unpredictable price movements.
Trading during this phase is strongly advised against. The initial hours of Monday trading are often marred by erratic price action, making it unwise to rush into positions. Moreover, there's a psychological aspect to consider: after a weekend break from trading, there's a temptation to dive back in for a quick dopamine fix from executing trades.
However, giving in to this impulse can spell trouble, leading to impulsive decisions, deviation from trading plans, and overall poor risk management. To counteract these tendencies, it's best to exercise restraint and refrain from active trading on Mondays. Instead, take a passive approach and spend time observing chart patterns. This not only cultivates self-discipline but also reinforces adherence to trading strategies, laying the groundwork for long-term success in navigating market volatility.
