BollingerBands

[columbus]

EOD=19.11.10 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.
The middle line turns into WHITE. Candles over White line.
If the candles are concentrated in Bottom band ONLY go Short.
The middle line turns into MAROON.Candles below Maroon line.
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.
The middle line turns into WHITE. Candles over White line.
If the candles are concentrated in Bottom band ONLY go Short.
The middle line turns into MAROON.Candles below Maroon line.
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.

 

[swati23]

Any reason why you are using three bollinger bands? By the way, how to open 2 charts simultaneously in TradeTiger? Also, does Sharekhan allow us to sell shares tomorrow which have been bought today?

 

[columbus]

Any reason why you are using three bollinger bands? By the way, how to open 2 charts simultaneously in TradeTiger? Also, does Sharekhan allow us to sell shares tomorrow which have been bought today?

Hi Swati,

I am using close spaced Bollinger Bands [ bb(20,2),bb(20,2.03),bb(20,2.06)...]
to make them look THICKER.
Plot any chart by clicking the mouse on it.Move it to any corner.Again click
the mouse on another scrip with keeping the CONTROL key pressed on.
YES.In Sharekhan you can sell shares tomorrow which have bought today,by visiting the menu DPSR.(will be found in same menu as LIMIT POSITION, ORDERS,NET POSITIONS etc.......................)

 

[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.
The middle line turns into WHITE. Candles over White line.
If the candles are concentrated in Bottom band ONLY go Short.
The middle line turns into MAROON.Candles below Maroon line.
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.

 

[swati23]

Hi Swati,

I am using close spaced Bollinger Bands [ bb(20,2),bb(20,2.03),bb(20,2.06)...]
to make them look THICKER.
Plot any chart by clicking the mouse on it.Move it to any corner.Again click
the mouse on another scrip with keeping the CONTROL key pressed on.
YES.In Sharekhan you can sell shares tomorrow which have bought today,by visiting the menu DPSR.(will be found in same menu as LIMIT POSITION, ORDEFS,
NET POSITIONS etc.......................)

Hi Columbus,

Is that allowed? My friend said you can't sell shares tomorrow as the settlement is T+2.

 

[columbus]

Hi Columbus,

Is that allowed? My friend said you can't sell shares tomorrow as the settlement is T+2.

Hi Swati,

Ask her/him to go through "5-day auto square off" .
Recently I sold some shares after purchasing previously day back.

 

[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.
The middle line turns into WHITE. Candles over White line.
If the candles are concentrated in Bottom band ONLY go Short.
The middle line turns into MAROON.Candles below Maroon line.
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.
The middle line turns into WHITE. Candles over White line.
If the candles are concentrated in Bottom band ONLY go Short.
The middle line turns into MAROON.Candles below Maroon line.
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.