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 (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]

I think upto 14.13 everything went normal.Afterwards the servers were
choked today, and no feeds thereafter until 2.30. or Was it a problem faced
by me???????.

 

[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]

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.

 

[laxsri]

Hi Columbus,

I use Amibroker, there are two stochastic indicators %K & %D. Please let me know as how should I set the settings in them. Also guide me as how to set 8,3,4 in RSI. Can you please share the afl code?

 

[columbus]

Hi Columbus,

I use Amibroker, there are two stochastic indicators %K & %D. Please let me know as how should I set the settings in them. Also guide me as how to set 8,3,4 in RSI. Can you please share the afl code?

Hi Laxsri,

It seems there is a mix-up in your post ,between stochastics and RSI.
The default parameters of RSI is (9,14).
The popular parameters of Stoch is (3,8,4).(not like the mentioned by you)
My knowledge about Ami is completely Nil.
These parameters are taken from Tradetiger software.

 

[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=28.5.10 Nifty chart of last few months.

 

[laxsri]

All,

This may be a basic question but can anyone please help me set the RSI (9,14) and stochastic (3,8,4) im Amibroker and also direct me to understand the parameters of 3,8,4 etc.

 

[columbus]

All,

This may be a basic question but can anyone please help me set the RSI (9,14) and stochastic (3,8,4) im Amibroker and also direct me to understand the parameters of 3,8,4 etc.

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator