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thanks Raks,
this also works for the DOW futures as well. I use it for swing trading stocks to time my entries
My thinking used to be to wait for a break above horizontal resistance before going long as the futures turn, but because futures and FX bounce between the bollies, my new thinking is to always enter on the lower band bounce and if things turn sour overnight and go lower, I will have a small loss the next trading day as the futures will keep bouncing off the lower band and i will have time to exit my longs with a smaller loss.
After watching FX and futures charts in real time now for awhile I am convinced that bollies and horizontal lines of support and resistance can tell us virtually everything about direction and trend in FX and futures.
As a software developer it makes sense to me as these things are easily computed and not subjective at all like a diagonal line of support can be
What makes the slope of the bollies work is FX and futures bounce between the bollies on all time frames and hence take time to turn and get into the horizontal groove
What distorts the charts though are the sudden moves from the breaking of major horizontal support/resistance levels and also interest rate decisions that are unexpected
