BollingerBands

[columbus]

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?
Regards
Raghav

Hi Raghav,

I agree with you.Just for your info.
Due to some software problem ,AVG (s,20) sometimes
intersects the bands ,which should not happen at all as per theory.
All you have to do is ,delete AVG(s,20) line and plot it freshly once again.It happened in my case also,but I was in hurry to post it and I logged out tradetiger completely.

 

[Raghavacc]

Hi Raghav,

I agree with you.Just for your info.
Due to some software problem ,AVG (s,20) sometimes
intersects the bands ,which should not happen at all as per theory.
All you have to do is ,delete AVG(s,20) line and plot it freshly once again.It happened in my case also,but I was in hurry to post it and I logged out tradetiger completely.

Hi Columbus,

Do agree that as per theory it cant.I do face similar issue even when I zoom in the chart.Above is the corrected chart.

About yesterdays rally I forgot to mention that as per BB method also it gave a clear buy signal i.e:Candles being clustered around top band.

==============================================================================================================

Some more points to add:

One of the main reasons why do we fail as traders sometimes is because of preconceived notions. In last 2 weeks there were up down down up down pattern kind of days.Yday the bias was that market will slide further. It did the opposite .Then after ydays huge rally every one would be looking to long today. This happens to all traders in innitial stages. It happened to me as well.When I started thinking " In market anything can happen any moment" and started just focusing on chart the results improved to a great extent.

It pays if We only listen to CHART and MARKET and not to mad crowd outside.

Regards
Raghav

Regards
Raghav

 

[columbus]

Hi Raghav,

I agree with you.Just for your info.
Due to some software problem ,AVG (s,20) sometimes
intersects the bands ,which should not happen at all as per theory.
All you have to do is ,delete AVG(s,20) line and plot it freshly once again.It happened in my case also,but I was in hurry to post it and I logged out tradetiger completely.

Thank you ,Raghav.This is not your problem at your end
but a small software problem.

Investment with the help of charts is more fetching than
without them.

Yesterday (10.5.10) was a clear cut example of Case.2.

 

[columbus]

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.

 

[columbus]

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.

 

[J_D]

Columbus,

May be a silly query.. What does "S" represent in the Avg(S,20) formula?

JD,,

 

[columbus]

Columbus,

May be a silly query.. What does "S" represent in the Avg(S,20) formula?

JD,,

SIMPLE average of last 20 candles.
s..........simple.

 

[columbus]

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.

 

[J_D]

SIMPLE average of last 20 candles.
s..........simple.

Thanks for the reply.. But Avg(x,20) always refer simple average, But, what does S stand for.. Is it O, H, L , C... or any other formula in place?

JD

 

[columbus]

Thanks for the reply.. But Avg(x,20) always refer simple average, But, what does S stand for.. Is it O, H, L , C... or any other formula in place?

JD

It is CLOSE that matters most.