BollingerBands

[columbus]

hi colombus,
the thread is under day trading, your initial posts were using 3min/5min t/f , on a no of occassions the discussion was for daytrading so i thought it is day trading technique.need to go through all posts again.anyway thanks
anyway, if it is eod strategy, its even better. i am in search of longer duration strategy.tell me about eod strategy and entry exit and s/l rules, particularly wrt trending markets, like present day market. will be highly obliged
regards,
girish

Hi Girish,

you are exactly correct.I used it as Day Trading technique in initial stages.
I used to put EOD chart at random intervals and many people asked me to
use it on regular interval,so made it as EOD as of NOW.

Simple technique, short on TOP band and buy on BOTTOM band with due
diligence to crossover.

 

[girishhu1]

hi columbus,
i was going through your bw thread. you have given a method for staying in trend- using 2eh,2l and bb20,1.we have rules for taking trades for trend reversal, can you put few rules for trades for trend continuation for the benefit of all newbies like me, pl? tks in advance
regards,
girish

 

[columbus]

hi columbus,
i was going through your bw thread. you have given a method for staying in trend- using 2eh,2l and bb20,1.we have rules for taking trades for trend reversal, can you put few rules for trades for trend continuation for the benefit of all newbies like me, pl? tks in advance
regards,
girish

Hi Girish,

Your query is answered here in BOLLINGERWORM.
http://www.traderji.com/day-trading/48558-bollingerworm.html#post578279

 

[columbus]

EOD=16.8.11 ................7-month NIFTY chart

Basically there are 2 lines in chart , 20-SMA in (WHITE+BLACK) colours
and 10-ema in VIOLET colour.In bullish conditions 20SMA will in White
colour and bearish condition it will be in Black colour.Violet colour line
decides the momentum of market, mostly.

 

[4xpipcounter]

Uploaded with ImageShack.us[URL=http:

Hi Columbus, I want to pop in to share this chart with your viewers. I like to use the sigma 3 setting along with the 2. Just because of the statistical probability, the 2 is going to get hit a lot, along with extensive period of hugging that reading. The extreme, as we know, is the signal to reverse direction. A lot of times the candle hits the 2, then hugs it for several candles.

The 3 gets hit less than 2/5 the amount the 2 does. When it does get hit, you know the next candle, it is coming off. That's why I plotted both settings on the chart.

I was looking at the monthly chart. My methodology is showing we are headed to at least 4652. The monthly confirms a move to 4736.

 

[columbus]

Hi Columbus, I want to pop in to share this chart with your viewers. I like to use the sigma 3 setting along with the 2. Just because of the statistical probability, the 2 is going to get hit a lot, along with extensive period of hugging that reading. The extreme, as we know, is the signal to reverse direction. A lot of times the candle hits the 2, then hugs it for several candles.

The 3 gets hit less than 2/5 the amount the 2 does. When it does get hit, you know the next candle, it is coming off. That's why I plotted both settings on the chart.

I was looking at the monthly chart. My methodology is showing we are headed to at least 4652. The monthly confirms a move to 4736.

Hi 4xpipcounter,

Good point raised.I will post in detail in little later.

 

[columbus]

EOD=17.8.11 ................7-month NIFTY chart

Basically there are 2 lines in chart , 20-SMA in (WHITE+BLACK) colours
and 10-ema in VIOLET colour.In bullish conditions 20SMA will in White
colour and bearish condition it will be in Black colour.Violet colour line
decides the momentum of market, mostly.

 

[columbus]

Hi 4xpipcounter,

Thanks for coming to this thread and sharing your views.

As per statistical probability sigma3 sees 99% candles falls
within Bands ,sigma2 sees 95% within bands and sigma1 sees 68%
within bands.There is not much achieved in having this pair and
at the same time there is no harm in having these pair too.

You are exactly correct in saying Sigma3 hits the bands fewer times.
In last 4 months it has hit bands 4 times.If it has hit TOP band
market moved DOWN and hitting Bottom band sees market moving
upwards.Last time it has hit bottom band.

Generally market moves in the direction of Gaps.

If political situation is assumed stable, there is likely-hood of
bounce.

 

[4xpipcounter]

Columbus, I like your point you made about the gaps. The upper part of the gap becomes an R in a DOWN, and vice versa. Just in case prices ranges above the gap (in a downtrend), it is a matter of time when there will be a break south. The alert comes in once price action has hit the lower part of the gap.

Hi 4xpipcounter,

Thanks for coming to this thread and sharing your views.

As per statistical probability sigma3 sees 99% candles falls
within Bands ,sigma2 sees 95% within bands and sigma1 sees 68%
within bands.There is not much achieved in having this pair and
at the same time there is no harm in having these pair too.

You are exactly correct in saying Sigma3 hits the bands fewer times.
In last 4 months it has hit bands 4 times.If it has hit TOP band
market moved DOWN and hitting Bottom band sees market moving
upwards.Last time it has hit bottom band.

Generally market moves in the direction of Gaps.

If political situation is assumed stable, there is likely-hood of
bounce.

 

[timepass]

I too think that the gap will be a tough resistance this time. Even if the political situation is stable, the economy and international cues don't support any major upmove.

I don't understand much about sigmas but with my basic understanding of the patterns, as I mentioned elsewhere, nifty may be making an M, with the gap as the top. I hope it has finished forming the left shoulder and that we are on the way up to form the right shoulder. The difference in the heights of the two shoulders may indicate the further targets for me.

I know, I know.. watching the "M" and "W" is a very simplistic way of TA..