BollingerBands

[anayash]

The stochastic Oscillator is the ultimate reversal indicator. RSI similarly.When the RSI turns up notice the peaks and the troughs coincide with the nifty movement. So ideally enter then.
it is good for scalp trades so if you enter on one trough (RSI oversold) exit on the succeeding peak (RSI overbought) .

hi alroyraj,

what period RSI & Stoch do you prefer?

 

[alroyraj]

hi aloyraj,

what period RSI & Stoch do you prefer?

Its alroyraj.
Anyways, I prefer Stochastic 5,3,3 for scalping (2 min TF) and stock 14,3,3 for little longer duration (5 min TF).
Sometimes the settings has to be pegged to the daily volatility. This I am working on.

 

[columbus]

Somewhere you have posted a snapshot in which RSI was plotted on price. How do we interpret when RSI is plotted on price along with bollingerbands. Can you please explain with an example (snapshot of a chart)?

You can refer first post or post#105 (page116).

 

[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]

Its alroyraj.
Anyways, I prefer Stochastic 5,3,3 for scalping (2 min TF) and stock 14,3,3 for little longer duration (5 min TF).
Sometimes the settings has to be pegged to the daily volatility. This I am working on.

Hi alroyraj,

I agree with you.Finding a suitable settings for all conditions ,that in all time
periods with all time frames is difficult to obtain.We need to tweak a lot to
find suitable settings for a day.The settings work OK for a day and may not
work for next days.

 

[veluri1967]

Hi alroyraj,

I agree with you.Finding a suitable settings for all conditions ,that in all time
periods with all time frames is difficult to obtain.We need to tweak a lot to
find suitable settings for a day.The settings work OK for a day and may not
work for next days.

Columbus, Alroyraj,

You both are so selfish that you are not taking me into consideration.

I am not able to trade intraday charts due to my employment. Why donot you spare sometime to do some tweaks for me to swing trades atleast.:lol:

PS:- Its always a pleasure for me to read your posts.

 

[columbus]

Columbus, Alroyraj,

You both are so selfish that you are not taking me into consideration.

I am not able to trade intraday charts due to my employment. Why donot you spare sometime to do some tweaks for me to swing trades atleast.:lol:

PS:- Its always a pleasure for me to read your posts.

Hi veluri,

Basically in this thread we discuss strategies related to Intraday trades only,
that too in Futures.

For people working somewhere else,it is highly recommended to trade in
stocks with LONG term look only. Because travelling in two boats with each
leg in a boat ,may not reach the destination, SAFELY.

 

[prasadam]

Hi Columbus.

IMO, BB can be used for positional trades also.

Gimme Bar Setup, BB squeeze etc. can be employed na?

Hi veluri,

Basically in this thread we discuss strategies related to Intraday trades only,
that too in Futures.

For people working somewhere else,it is highly recommended to trade in
stocks with LONG term look only. Because travelling in two boats with each
leg in a boat ,may not reach the destination, SAFELY.

 

[columbus]

Hi Columbus.

IMO, BB can be used for positional trades also.

Gimme Bar Setup, BB squeeze etc. can be employed na?

Hi prasadam,

Your are in this thread after a long time.YES,BB techniques can be used to positional trades also.In this thread you can find BB chart of Nifty on LONGterm basis 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.