Dannygits Bamboo Trading Plan he Bamboo Strategy: Execution Summary
The Bamboo Plan is a high-probability trading system designed to capture explosive momentum by identifying periods of market "coiling" (compression) before they lead to "expansion" (breakouts). It relies on three core pillars: State, Location, and Seed.
1. Assessing the State: Coiled vs. Stretched
Before entering a trade, we measure the distance (the "Rubber Band") between the 20-period Exponential Moving Average (EMA) and the 200-period Simple Moving Average (SMA).
* Narrow State (The Coiled Spring): When the gap between the 20 EMA and 200 SMA is tight (typically < 1.5%). This indicates institutional accumulation and a potential for a massive move. Action: Look for A+ Entries.
* Wide State (The Stretched Rubber Band): When the price is extended far from the moving averages (typically > 2%). The risk of a "snap-back" to the mean is high. Action: Stay in cash / Avoid chasing.
2. Defining the Location: The Power Hour
We use the last hour of the previous trading session (3:00 PM – 4:00 PM EST) to set our boundaries for the next day.
* The Range: Mark the High and Low of that final hour.
* The Ignition Zone: A high-conviction entry occurs when the price breaks out of this "Power Hour" range while simultaneously being in a Narrow State.
* The Soil: We look for price to be supported by the 20 or 200 moving averages. If the price is far above these lines, it has no "soil" to grow from.
3. Planting the Seed: The Entry Trigger
Even in a perfect location, we do not trade without a signal. We wait for a specific "Seed" to print:
* The Expansion Candle: A large, solid-bodied candle (often twice the size of previous candles) that closes near its high (for longs) or low (for shorts).
* The Tail Signal: A "Bottoming Tail" (long lower wick) that touches the moving average or a key support level, showing that sellers were rejected.
* The Confirmation: Entry is taken one cent above the high of the signal candle, with a stop-loss placed at the low of that same candle or the recent pivot.
4. The "Non-Negotiable" Rules
* Trend Alignment: Only take Longs if the 8 EMA is above the 20 EMA. Only take Puts if the 8 EMA is below the 20 EMA.
* Wait for the Kiss: The best trades happen when the price, the Moving Average, and the Horizontal Support all intersect at once.
* Cash is a Position: If the state is "Wide" or the signal is missing, sitting in cash is the professional choice to protect capital.
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