BollingerBands
- Thread starter columbus
- Start date
BB(20,2) of nifty futures on time frame 4/6 min are presented below.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
BB(20,2) of nifty futures on time frame 4/6 min are presented below.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
BB(20,2) of nifty futures on time frame 4/6 min are presented below.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work and have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band go Long.
If the candles are concentrated in Bottom band go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
BB(20,2) of nifty futures on time frame 4/6 min are presented below.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work & have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band ONLY go Long.
If the candles are concentrated in Bottom band ONLY go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
More BB's are chosen to draw the Bands THICKER but not for any
other purpose.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work & have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band ONLY go Long.
If the candles are concentrated in Bottom band ONLY go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
More BB's are chosen to draw the Bands THICKER but not for any
other purpose.
A small thing but helpful to many:
http://www.traderji.com/trading-diary/39900-trade-history-work-sheet.html#post426065
http://www.traderji.com/trading-diary/39900-trade-history-work-sheet.html#post426065
BB(20,2) of nifty futures on time frame 4/6 min are presented below.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work & have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band ONLY go Long.
If the candles are concentrated in Bottom band ONLY go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
Case1.Choppy Market:
Go long when Red+Green candles pierce the bottom band and wait for 15minutes
for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band and wait for 15minutes
for confirmation after taking position , otherwise come out with stoploss.
In case of Verital rise or Vertical fall ,the above rules may not work & have close
look at the central line and outer boundaries always.Perhaps this may qualify for case.2.
A close of candle outside the bands need not necessarily mean termination of trend but it be continuation as well.
Have patience to keep a watch on those situations.
Case2.Trending Market:
If the candles are concentrated in Top band ONLY go Long.
If the candles are concentrated in Bottom band ONLY go Short.
Rules of Case.1 do not work here and keep Mid line as stoploss.
The Proximity of candles with respect to Outer boundaries indicates the Strength.
More strength means more closer to Outer boundaries.
Avoid trading when the Bollinger Band is narrow.
It cant get simpler than this.2 signals. 2 short trades. Also see how beautyfully it was set up. It was TATA STEEL.
One move was of 608-586 =22 Rs. and the second one was of 593-580 = 13 Rs. Total = 35 Rs. what else one need?
Thats why we need not trade each day.A day like these are enough to make the entire week.
What was the risk? 3 RS in each trade.Top of the pierced candle + filter if one wants.
I have marked some observations with arrows. If one follows those disciplines religiously there is no way one can lose.
========================================================
We were talking of using stochs.If one has obsrved yday's phenomena it was a method in madness. Stoch stayed in OB for more than 5 bars twice .Its shouting at us to buy buy buy.The dip we see at 12 PM was the right time to buy as per our tiger
( ST) brother's highly acclaimed method .
Rest is history.Charts of Nifty ,TATAMOTORS,ICICI BANK all were showing similar phenomena.
Overall what I am trying to say is there will be whipsaws.However under these methods our S/L will be very minimal and the reward will be phenomenal.So that RR makes all the difference.Just 2 days like y'day and today can overpower those small loses and make the entire week for some if not entire month.
Small things make big difference.
Regards
Raghav
One move was of 608-586 =22 Rs. and the second one was of 593-580 = 13 Rs. Total = 35 Rs. what else one need?
Thats why we need not trade each day.A day like these are enough to make the entire week.
What was the risk? 3 RS in each trade.Top of the pierced candle + filter if one wants.
I have marked some observations with arrows. If one follows those disciplines religiously there is no way one can lose.
========================================================
We were talking of using stochs.If one has obsrved yday's phenomena it was a method in madness. Stoch stayed in OB for more than 5 bars twice .Its shouting at us to buy buy buy.The dip we see at 12 PM was the right time to buy as per our tiger
( ST) brother's highly acclaimed method .
Rest is history.Charts of Nifty ,TATAMOTORS,ICICI BANK all were showing similar phenomena.
Overall what I am trying to say is there will be whipsaws.However under these methods our S/L will be very minimal and the reward will be phenomenal.So that RR makes all the difference.Just 2 days like y'day and today can overpower those small loses and make the entire week for some if not entire month.
Small things make big difference.
Regards
Raghav
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