BollingerBands

[columbus]

Small thing but helps in a big way.

http://www.traderji.com/trading-diary/39900-trade-history-work-sheet.html?nojs=1#goto_threadsearch

 

[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. Candles over Midline.
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, especially in the initial stages.
EMAs are more sensitive than SMAs.Hence EMA20 line (WHITE in case bullish conditions,
MAROON in case bearish conditions) with respect to SMA20 (blueline) is introduced.

 

[columbus]

 

[RajeshDua]

:thumb::clap:A Very BollingerHappy New Year 2011 to Columbus and all friends...RajeshDua :thumb::clap:

 

[rahuld2976]

Dear columbus & all friends here,

Wish you a very happy & profitable new year !!

 

[prasadam]

Columbus and his band



Wish you a Happy new year 2011

 

[columbus]

EOD-31.12.10 NIFTY chart of last 7 months

 

[MurAtt]

Hi Mr C ...

A very happy & prosperous 2011 to you and your loved ones.


Have you noted that the last candle has pierced the upper BB. If we have a Red on Monday .. I suppose bulls would be doomed .. till at least 5840 and lower ....

What do you say ?

Cheers ..

 

[columbus]

Hi Mr C ...

A very happy & prosperous 2011 to you and your loved ones.


Have you noted that the last candle has pierced the upper BB. If we have a Red on Monday .. I suppose bulls would be doomed .. till at least 5840 and lower ....

What do you say ?

Cheers ..

Hi Stock Murtaza,

Prosperous new year from my side to you and your family.

The word PIERCE is used when both GREEN+RED candle touches the bands.
As long as Green colour candles or few Red candles with small body touches,
the top band ,It does not matter for bulls.

 

[MurAtt]

Yes .. that is why I said .. that "if we have a Red on Monday"