BollingerBands

[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.

 

[sumitdasjoshi]

hey colamb do you only tread with bb or is there any other indicater you use.

 

[nac]

Columbus -

I guess mostly you trade with BB (20,2). If you combine oscillators along with BB, What would be ideal period for oscillators like CCI, Stoch, RSI, MACD etc... Please give periods separately for every oscillators.

And what would be the ideal period for BB (9,2)... I mean period for oscillators.

I raise this because, there are periods (for osc) which gives good signals for trading. Assume that I am plotting BB (20,2) and I am plotting MACD 12, 26, 9 (default). BB gives signal based on period 20 while MACD gives signal based on different period. Should we use the same period for BB and Osc... or we can use different period.

I am used to see osc in a different pane rather than on prices.

 

[columbus]

Columbus -

I guess mostly you trade with BB (20,2). If you combine oscillators along with BB, What would be ideal period for oscillators like CCI, Stoch, RSI, MACD etc... Please give periods separately for every oscillators.

And what would be the ideal period for BB (9,2)... I mean period for oscillators.

I raise this because, there are periods (for osc) which gives good signals for trading. Assume that I am plotting BB (20,2) and I am plotting MACD 12, 26, 9 (default). BB gives signal based on period 20 while MACD gives signal based on different period. Should we use the same period for BB and Osc... or we can use different period.

I am used to see osc in a different pane rather than on prices.

hey colamb do you only tread with bb or is there any other indicater you use.

Hi Nac & Sumit,

I trade on BB(20,2) On timeframes 3~5min along with Stoch (3,8,4) and
RSI (9,14).In the beginning I start with small frames because fewer candles
are avialable.

 

[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.

 

[Sureyes]

HI Columbusji,
In Banknifty today I have enterd in to Short at 12.53 But when Banknifty direction was towards up I have came out at 13.55 then I found it was diffiecult to again enter for Long as at that point it was tuff to say wheather how long it go up or it may reverce Down with Red Candle?? Now after watching the Nifty I thought I could have decided to go long at 13.00 (When Candle Pierce at lower band BB of nifty) in Banknifty as both go almost in sync.Secondly pl give some clue to know that Candle is 'Pierce' or 'Grazing'.Some times to confirm that it is Really 'Pierceing or Grazing' I have to wait for few more Candles but then may be it is too late to enter.
need your guidance on above situations.

Thank you so much Sir,always greatfull for your unconditional attitude of shareing your vast experiance/knowledge.
Sureyes

 

[columbus]

HI Columbusji,
In Banknifty today I have enterd in to Short at 12.53 But when Banknifty direction was towards up I have came out at 13.55 then I found it was diffiecult to again enter for Long as at that point it was tuff to say wheather how long it go up or it may reverce Down with Red Candle?? Now after watching the Nifty I thought I could have decided to go long at 13.00 (When Candle Pierce at lower band BB of nifty) in Banknifty as both go almost in sync.Secondly pl give some clue to know that Candle is 'Pierce' or 'Grazing'.Some times to confirm that it is Really 'Pierceing or Grazing' I have to wait for few more Candles but then may be it is too late to enter.
need your guidance on above situations.

Thank you so much Sir,always greatfull for your unconditional attitude of shareing your vast experiance/knowledge.
Sureyes

Hi Sureyes,

I.Yes ,today entered BNF (Short) at 1100 and squared off at 1200 for a
meagre profit of Rs.500.Later I have shifted NF.I keep both in all my watch
lists.

II.As mentioned in previous posts,Apart from BB,I monitor Stoch+RSI.
Because they indicate Over-bought/Over-Sold conditions.

III.In case your are quite sure of bullishness ,you put an order +2points,because it will take care if market gains further.

IV.Grazing in bullish market consists of GREEN candles only.(Moves along top band)
Piercing means Opposite candle (Green+Red .....bullish market) of comparable size.

 

[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.

 

[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.

 

[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.