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 of comparable lengths 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.Please see that RSI value is around 25-35 and you have sufficient time left for closure of market.
Go short when Green+Red candles of comparable lengths 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.Please see that RSI value is around 75-65 and you have
sufficient time left for closure of market.

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=8.10.10 NIFTY chart of last 7 months

 

[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 of comparable lengths 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.Please see that RSI value is around 25-35 and you have sufficient time left for closure of market.
Go short when Green+Red candles of comparable lengths 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.Please see that RSI value is around 75-65 and you have
sufficient time left for closure of market.

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 of comparable lengths 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.Please see that RSI value is around 25-35 and you have sufficient time left for closure of market.
Go short when Green+Red candles of comparable lengths 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.Please see that RSI value is around 75-65 and you have
sufficient time left for closure of market.

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 of comparable lengths 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.Please see that RSI value is around 25-35 and you have sufficient time left for closure of market.
Go short when Green+Red candles of comparable lengths 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.Please see that RSI value is around 75-65 and you have
sufficient time left for closure of market.

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 of comparable lengths 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.Please see that RSI value is around 25-35 and you have sufficient time left for closure of market.
Go short when Green+Red candles of comparable lengths 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.Please see that RSI value is around 75-65 and you have
sufficient time left for closure of market.

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.

Could not post data as my internet connection was intermittent ,Sorry for it.

 

[SwingKing]

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


Could not post data as my internet connection was intermittent ,Sorry for it.

Columbus,

What platform (software and datasource) are you using for these 5 - min (intraday) charts and also how are you determining whether market is range bound or trending.

Tc

 

[saivenkat]

Columbus,

What platform (software and datasource) are you using for these 5 - min (intraday) charts and also how are you determining whether market is range bound or trending.

Tc

Sharekhan's Trade tiger

 

[columbus]

Columbus,

What platform (software and datasource) are you using for these 5 - min (intraday) charts and also how are you determining whether market is range bound or trending.

Tc

The Central average line SMA-20 plays very crucial role in deciding the
choppiness.It serves as STOPLOSS line.In case of bull market you do not
find candles below the mid-line and in case of bear market you do not find
candles above mid-line.

I mentioned manytimes in this thread ,that, EOD charts always look impressive
than ONLINE charts,makes trading a EASY profession.But in reality ,it is not
that EASY.

 

[SwingKing]

The Central average line SMA-20 plays very crucial role in deciding the
choppiness.It serves as STOPLOSS line.In case of bull market you do not
find candles below the mid-line and in case of bear market you do not find
candles above mid-line.

Interesting observation. What time frame is this observation valid in?

As far as EOD is concerned, I feel it is upto the trader whether he wants to make things complex or keep it simple.

Tc