BollingerBands

[columbus]

BB(20,2) of nifty futures and bank nifty, 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.

..............................................................BANKNIFTY.................

 

[Evilboy]

What is a piercing? Does the candle have to open/close below/above the bands?

 

[columbus]

What is a piercing? Does the candle have to open/close below/above the bands?

I hope this will help:
http://www.traderji.com/day-trading/27421-bollingerbands-108.html#post291814

Post.33

 

[columbus]

On Friday 25/6/10, we had 60 point range on Nifty and 160 point range
on Bank Nifty ,approximately.

http://www.traderji.com/day-trading/27421-bollingerbands.html#post447657

Nifty has a lot size 50 and Bank nifty at 25.In other-words ONE point change
in respective indices gives you Rs.50 and Rs.25 respectively.The lot size ratio stands at 50/25=2.0.But the index range stands at 160/60=2.667.

Though it not too rare ,expecting to happen again and again, is too GREEDY.

 

[columbus]

BB(20,2) of nifty futures and bank nifty, 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.

-----------------------------BANK NIFTY---------------------------

 

[columbus]

I love to work with Heikin Ashi Candles ,I requested SHAREKHAN to
include them in their next Upgrade.

 

[columbus]

BB(20,2) of nifty futures and bank nifty, 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.

--------------------------------------------------Bank Nifty-----------------------------

 

[columbus]

Some people use Bollinger Bands as Secondary signal and RSI ...etc
as Primary.In case of Choppy Markets ,on EOD charts one can see
RSI graph ,perfectly inside the Bands.But on strong trending days
there is a perfect correlation between RSI and BB.In any case ,it
is a good idea to use BB with RSI ,as discussed in the first few posts
initially.


Blue line =RSI line

 

[columbus]

BB(20,2) of nifty futures and bank nifty, 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.

-----------------------------BANK NIFTY----------------------------------------

 

[Evilboy]

off-topic: how to view 2 or more charts at a time in trade tiger?