BollingerBands

[columbus]

BB(20,2) of nifty futures on time frame 3min-5min
are presented below.

Go long when Red,Green candles pierce the bottom band,
Go short when Green,Red candles pierce the top band

Please continue with TREND if candles graze TOP/BOTTOM
bands.

This Bipolar nature was seen many times previously ,that is,
moving in one direction till a time and then moving in opposite
direction altogether.

 

[kainiteh]

BB(20,2) of nifty futures on time frame 3min-5min
are presented below.

Go long when Red,Green candles pierce the bottom band,
Go short when Green,Red candles pierce the top band

Please continue with TREND if candles graze TOP/BOTTOM
bands.

We have not seen this kind of concentration candles in
only one band recently.We saw candles in TOP
band for few minutes at around 1305hrs.

please could you explain this,
"Go long when Red,Green candles pierce the bottom band"
so i should go for long at 1410 hrs in above chart,but it still in
trend down?,how can i manage that position?
i'm confused! i gone through you posts many times and i am
missing something which is very important for bollinger band!

 

[columbus]

First of all ,there a vast difference of looking at EOD bollinger bands
and LIVE bollinger bands.

At "A" we had Green+Red pierce and take a SHORT position,
at "B" we had grazing of bottom band , at "C" there appeared
RED+GREEN candle pierce ,so,cover the short position.Sometimes
we do lose some points to maintain accuracy of results.In this
example we lost point for the segment CD."D" is another case
of perfect LONG position.Generally we avoid it because we do not
much time left for market closure.

 

[prasadam]

My approach is to put a SL below the lowest of both the bars, in the case of long trade.

please could you explain this,
"Go long when Red,Green candles pierce the bottom band"
so i should go for long at 1410 hrs in above chart,but it still in
trend down?,how can i manage that position?
i'm confused! i gone through you posts many times and i am
missing something which is very important for bollinger band!

 

[kainiteh]

First of all ,there a vast difference of looking at EOD bollinger bands
and LIVE bollinger bands.

At "A" we had Green+Red pierce and take a SHORT position,
at "B" we had grazing of bottom band , at "C" there appeared
RED+GREEN candle pierce ,so,cover the short position.Sometimes
we do lose some points to maintain accuracy of results.In this
example we lost point for the segment CD."D" is another case
of perfect LONG position.Generally we avoid it because we do not
much time left for market closure.

Thank you very much!
now i am clear!

@ prasadam
you approach is very fine and fair!
thanks for sharing!

 

[kainiteh]

BB(20,2) of nifty futures on time frame 3min-5min
are presented below.

Go long when Red,Green candles pierce the bottom band,
Go short when Green,Red candles pierce the top band

Please continue with TREND if candles graze TOP/BOTTOM
bands.

What a FALL at the end? 25-point fall.Funny enough
I think it was 60% fall ,if mathematics are correct.

please explain your entry and exit in detail for above mentioned day,
please still i'm confusing about entry & exit..

i understood like this with my knowledge,so if you correct me
than i will learn better!
please help on this,i am two month old in trading!
1.enter short @ 11
cover @ 11:50

2.enter long @ 11:50 am (since red+green pierce lower band)
hit SL

3.enter short @ 13:15
hit SL

4.enter short @ 13:45
hit SL

5.enter short @ 14:00
hit SL

6.enter short @ 14:30
cover @15:25 (closing time)

SL: for short high of piercing green candle
for long lower of piercing red candle

looking for your valuable reply sir!

 

[columbus]

Perhaps even FEAR is equally dangerous as GREED for
a day trader.One has to conquer these ,whatever setup
one uses.

As far as Bollinger Bands are concerned the top band
connects the HIGHs and bottom band connects the
LOWs.

Theoritical Stuff::96% of closes falls within the bands and
only 4% closes fall outside the bands.Basically these 4%
we are trying to exploit.

 

[columbus]

please explain your entry and exit in detail for above mentioned day,
please still i'm confusing about entry & exit..

i understood like this with my knowledge,so if you correct me
than i will learn better!
please help on this,i am two month old in trading!
1.enter short @ 11
cover @ 11:50

2.enter long @ 11:50 am (since red+green pierce lower band)
hit SL

3.enter short @ 13:15
hit SL

4.enter short @ 13:45
hit SL

5.enter short @ 14:00
hit SL

6.enter short @ 14:30
cover @15:25 (closing time)

SL: for short high of piercing green candle
for long lower of piercing red candle

looking for your valuable reply sir!

1.enter short @ 11
cover @ 11:50

Perfect.You should have waited a little longer to trend to develop.
Perhaps Red+Green candles on bottom might have feared you.
But onething,if candles graze top/bottom bands CONTINUE
with this trend.

2.enter long @ 11:50 am (since red+green pierce lower band)
hit SL

Never place 2nd order in opposite direction immediately.I faced
the same problem few months back.

3.enter short @ 13:15
hit SL.

The Trade appears to be OK.Basically one has to be VIGILANT
once the middle line is crossed.One should look for double digit
gain ,not greedy.

4.enter short @ 13:45
hit SL
---ditto----

5.enter short @ 14:00
hit SL

---ditto----

6.enter short @ 14:30
cover @15:25 (closing time)

Perfect.

The middle line serves loosely 2 purposes.
1.Generally it gives the trend.
2.It acts like trailing stoploss.

 

[kainiteh]

@ above
Hi,
Thank you very much and its very good and perfect
explanation for my query.
so i do consider middle band for exit or trailing loss.

The middle line serves loosely 2 purposes.
1.Generally it gives the trend.
2.It acts like trailing stoploss.

if i follow this rules,
i may exit 3 and 4 with gain

still 5th trade is losing or no gain trade!


Thank you very much,right now i am learning high probability trading method.
so i am going to trade with only two thing, Bollinger Band and My setup

This reply really help me to understand BB better than ever!

 

[prasadam]

Hi kainiteh.

Initially try with higher time frames. say 5,10 or 15 min. charts.

And if you can afford, try two lots. Exit 1 position at central line and trail the second.

sorry for the intrusion.

cheers.

@ above
Hi,
Thank you very much and its very good and perfect
explanation for my query.
so i do consider middle band for exit or trailing loss.



if i follow this rules,
i may exit 3 and 4 with gain

still 5th trade is losing or no gain trade!


Thank you very much,right now i am learning high probability trading method.
so i am going to trade with only two thing, Bollinger Band and My setup

This reply really help me to understand BB better than ever!