BollingerBands

[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.

 

[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 (Keep case.2 in mind also always) and wait for 15minutes for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band (Keep case.2 in mind also always) 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 and Horizontal.

 

[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 (Keep case.2 in mind also always)
and wait for 15minutes for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band (Keep case.2 in mind also always)
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 and Horizontal.

 

[columbus]

From 10.20 to 12.20 Hrs the Bands were Narrow and Horizontal.
The Bandwidth was around 20 points.
But the REAL action was seen outside this time range.

 

[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 (Keep case.2 in mind also always)
and wait for 15minutes for confirmation after taking position, otherwise come out with stoploss.
Go short when Green+Red candles pierce the top band (Keep case.2 in mind also always)
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 and Horizontal.Check with Nifty-Spot chart occasionally.

 

[columbus]

EOD=21.5.10 Nifty chart of last few months.

 

[columbus]

NIFTY chart of 21/5/10 with timeframe 4min with different averages is shown.
As you noticed ,perhaps,Bollinger Bands are quickiest to respond observing
the PAIR of Candles hitting top band or bottom band, as mentioned in other posts here.

May be lower order averages (lesser than 10 or even lower) and lower time frame
will certainly help, but handling such data ,may be troublesome as it contains FALSE signals.

The chart contains candles without wicks deliberately ,for clarity,but mentioned many times
that that WICKS ARE PART & PARCEL OF CANDLE.Always check with Nifty-SPOT chart with
Nifty-FUTURE chart.The only difference may be the FIRST candle ,but it may decide the range often.

Blue line is (S,20) line ,above it Buy/Buy-Hold (white colour),and below it Sell/SELL Hold (Maroon colour).

 

[Raghavacc]

NIFTY chart of 21/5/10 with timeframe 4min with different averages is shown.
As you noticed ,perhaps,Bollinger Bands are quickiest to respond observing
the PAIR of Candles hitting top band or bottom band, as mentioned in other posts here.

May be lower order averages (lesser than 10 or even lower) and lower time frame
will certainly help, but handling such data ,may be troublesome as it contains FALSE signals.

The chart contains candles without wicks deliberately ,for clarity,but mentioned many times
that that WICKS ARE PART & PARCEL OF CANDLE.Always check with Nifty-SPOT chart with
Nifty-FUTURE chart.The only difference may be the FIRST candle ,but it may decide the range often.

Blue line is (S,20) line ,above it Buy/Buy-Hold (white colour),and below it Sell/SELL Hold (Maroon colour).

Hi Columbus,

Liked your new settings. This would definitely help to take decisions with clarity in the mind.

Regards
Raghav

 

[columbus]

Hi Columbus,

Liked your new settings. This would definitely help to take decisions with clarity in the mind.

Regards
Raghav

In the morning I was away from home so a bit delay in replying.
(I think you modified the post.)

At the outset ,I mention that Average lines are lagging indicators.
I am referring to NS (Nifty Short) graph which is slightly different from NF
(nifty future) chart.

Yes 12.20 is a weak signal as most of the average lines are UNBROKEN.
Previously I used have (s,20) as my trendline,there is nothing wrong
in having more,Exponential Average lines of lower order.

But signal at 14.20 at 4935 created problems.(Topband+Green+Red
indicating SHORT) and able to close by 1520 at 4925.