BollingerBands

[columbus]

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

Simple.Press the mouse on any scrip to plot a simple graph.Move the graph
to new location.Repeat the same thing on another scrip with keeping CNTL key pressed on.

 

[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=====================

 

[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]

Nifty chart of last 6 months with EOD=2/7/10.

The (Blue line + Maroon) is AVG(E,10) line.

(White + Maroon) is AVG (S,20) line.

Blue+White indicate a RISE ,2 Maroon lines indicate a FALL.

At this juncture better to wait and watch for an opportunity.

 

[columbus]

Source: Investopedia/ Educofin


HA chart is definitely looking better.

 

[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-----------------------------------
Today Bank Nifty saw gap-up opening.

 

[Sureyes]

Thank you so much for exploring bb i have watched the thread and felt that this is proven basis to enter in intraday trade.I reqest u to please if u mark the entry and exit points whenever u show any the chart,today practicaly i could not fond from where to enter as chart was ransbound exept in the bignning of the day but that time the bb was not yet formed,pl comment on todays nifty chart.

 

[columbus]

Thank you so much for exploring bb i have watched the thread and felt that this is proven basis to enter in intraday trade.I reqest u to please if u mark the entry and exit points whenever u show any the chart,today practicaly i could not fond from where to enter as chart was ransbound exept in the bignning of the day but that time the bb was not yet formed,pl comment on todays nifty chart.

Today we have very range-bound market.(30 points)
According our strategy we go LONG at 10.20 at 5246.
(If the candles are concentrated in Top band ONLY go Long.)
Our EXIT point was at 11.40 at 5262 ,when a Green pierced TOP
band.We have another SHORT position at 5260 immediately with
exit at 5246 at around 1330.Yet a couple of entries/exits ,but
they carry more risk than reward.
Working with EOD charts look easy, but they are not so on LIVE.

 

[Sureyes]

Today we have very range-bound market.(30 points)
According our strategy we go LONG at 10.20 at 5246.
(If the candles are concentrated in Top band ONLY go Long.)
Our EXIT point was at 11.40 at 5262 ,when a Green pierced TOP
band.We have another SHORT position at 5260 immediately with
exit at 5246 at around 1330.Yet a couple of entries/exits ,but
they carry more risk than reward.
Working with EOD charts look easy, but they are not so on LIVE.

Thats quit clear Thanks and Many Regards. I have marked these points on today,s chart for observing few days before entering live.

 

[columbus]

BB(20,2) of nifty futures and bank nifty, on time frame 5 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.