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.
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, especially in the initial stages.

 

[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, especially in the initial stages.

 

[praveen taneja]

A small querry bro is not it risky to enter in trade with watching 5 mnt TF chart?????????/

 

[columbus]

A small querry bro is not it risky to enter in trade with watching 5 mnt TF chart?????????/

In the initial stages 1,2 MIN Time Frames are OK. But at 12 o'clock or so ,they
become too NOISY.At the fag end I prefer 5~8 Min TF.At any time 4 such
windows are opened on my laptop.

 

[praveen taneja]

In the initial stages 1,2 MIN Time Frames are OK. But at 12 o'clock or so ,they
become too are NOISY.At the fag end I prefer 5~8 Min TF.At any time 4 such
windows opened on my laptop.

:clapping::clapping::clapping::clapping:

 

[columbus]

EOD=3/12/10 NIFTY chart of last 7 months.

 

[bhaskar145]

Hi Columbus,

Can u pls explain the term "Red+Green candles of comparable lengths ".

Thanx in advance.

 

[columbus]

 

[columbus]

Hi Columbus,

Can u pls explain the term "Red+Green candles of comparable lengths ".

Thanx in advance.

Hi Bhaskar,

I will explain it ,an example taken from today's chart.(Zoomed Portion for clarity)

Candles 10.01....10.15AM
TF ....1minute
Watch GREENnRED candles at Top and REDnGREEN candles at bottom band.
They are of COMPARABLE LENGTHS.

 

[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, especially in the initial stages.