BollingerBands

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Bollingerbands for Friday, 13th April. A wide ranging day it was, finally ended deep in red. Both the EMAs are red now and the candle has closed below them both. The bands have contracted further (Range 5386-5151, Width : 235).

 

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Bollingerbands for Monday, 16th April. Another wide ranging day it was, opned nearly at the bottom and closed bang at the top. In the process, it has retraced about 50% of its fall from 5326 on Friday to 5192 today. The candle closed below both the MAs (EMA7 and SMA20), both of which are still red. But the mood seems upbeat with the RBI policy tomorrow. The buying in last 5 minutes showed that the EOD traders were on the "buy" side.

The bands are extremely narrow (Range : 5402-5157, Width : 215), so there is a goodly chance of either side being hit. The bulls may find solace in similarity with the situation on 4th and 10th Jan.

For those so inclined, the 30 min and 60 min candles have closed well above their respective 21EMAs.

 

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Bollingerbands for Tuesday, 17th April. An inverted hammer today - "Can't keep me down" kind of pinbar, ending once again nearly at the top of the day. 7EMA has turned green but it is still below 20SMA. It hasn't gone over 20SMA for more than a month i.e. since 29th Feb when it crossed from above. The day's candle closed above 20SMA.

The bands are extremely narrow (Range : 5364-5155, Width : 209), so there is a goodly chance of either side being hit. Whatever, we are in for a period of increased volatility.

 

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Bollingerbands for Wednesday, 18th April. Opposite of yesterday, a "can't keep me up" kind of candle formed today, and closed at the low of the day. However, both the MAs are green and 7EMA has crossed 20SMA from below, indicating possible bullishness. The candle stayed above 20SMA throughout. However, a reversal to 20SMA @5266 can not be ruled out. The bands are still narrow (Range : 5368-5156, Width : 212).

 

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Bollingerbands for Thursday, 19th April. A solid green candle today, closing at high of the day and consolidated yesterday's candle. Both the MAs are green and 7EMA is above 20SMA. The candle is placed above both the MAs. The bands are widening slightly (Range : 5375-5154, Width : 221).

 

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Bollingerbands for Friday, 20th April. The candle is very long because of the freak trade. So, it has tested the 20SMA and ended up above both the moving averages. But 20SMA has turned red while 7EMA remains green. The bands were narrow (Range : 5362-5160, Width : 202).

PS : Though the candle is well in the upper part of the bands, yesterday's candle has made a "Market Structure High" as explained by Uttamkamlesh in his thread.

 

[columbus]

bb will work only when the market is trending,because its trend related indicator,stock market is not just trendind always ,80%of the price movements happenes in just 20%percent of the time.so 80% percent of the time market is just trading range or consolidation,only 20% percent of the time its trending,and again most of our trending markets happens over the night.so its imposible to make money bb,i think people will love to trade with bb because its very easy to understand theoratically,they do not like and dont want be with complex ones,but rememeber each and every movement in the markets we deal a difficult situations,so i name them as boring bands

Bollinger Bands work well in CHOPPY cases too.
Perhaps this post will change your outlook too.
http://www.traderji.com/day-trading/48558-bollingerworm.html#post670395
Now you may start calling from Boring Bands to Luring Bands.

 

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Bollingerbands for Monday, 23rd April. The candle back in the lower half. Both the MAs are red but 7EMA is still above 20SMA. The bands are still narrow (Range : 5363-5156, Width : 207).

PS : Though the candle is well in the upper part of the bands, yesterday's candle has made a "Market Structure High" as explained by Uttamkamlesh in his thread.

Yes, it did turn out to be a MSH.

 

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Bollingerbands for Tuesday, 24th April. The candle back in the lower half. Both the MAs are red and 7EMA now below 20SMA . The bands are still narrow (Range : 5362-5152, Width : 200).

Since the high of 5630 on 22nd Feb, only 8 candles have been fully above the 20SMA line. This situation is almost similar to the situation after the Diwali high (5399 on 28th October), after which only 8 candles were fully above the 20SMA line till 3rd January.

India vix = 19.25

 

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Bollingerbands for Wednesday, 25th April. The candle continues to remain in the lower half. 7EMA is red and is placed below 20SMA, which has turned green. The bands are still narrow (Range : 5360-5155, Width : 205).

India vix = 18.94

Despite today's big fall, we see that the volatility has decreased and the lagging indicator, 20SMA, is showing bullish color.. Does this mean that the upside is coming ?? Maybe, we are due for a period of sharp moves after so many days of narrow bands.