BollingerBands

[kainiteh]

I mentioned here manytimes that BB may not work
for individual scrips.I know many heavy scrips which
may stay at the same price for hours together.For BB
to be successful volatility is a MUST,which you will
find in Nifty futures.

Thanks,i have remember that so only i had tried
all the scrip with less volume trade and explorer
more thing about BB,i think it will help me in future
i have decided to stay with minifty and nifty!

:thumb:

 

[bandlab2]

I mentioned here manytimes that BB may not work
for individual scrips.I know many heavy scrips which
may stay at the same price for hours together.For BB
to be successful volatility is a MUST,which you will
find in Nifty futures.

index futures will always be less volatile compared to individual stocks. to move index, you need tp move 50 stocks in same direction

we need to pick some high liquid stocks like axis bank, hdil, dlf, icici bank, infosys, tata steel, tata motors etc

stoks like hdfc, hdfc bank, acc, hero honda, ntpc, bhel will not be good as they dont move much

 

[prashyrao]

index futures will always be less volatile compared to individual stocks. to move index, you need tp move 50 stocks in same direction

we need to pick some high liquid stocks like axis bank, hdil, dlf, icici bank, infosys, tata steel, tata motors etc

stoks like hdfc, hdfc bank, acc, hero honda, ntpc, bhel will not be good as they dont move much

I guess columbus is right here: volatility means rapid changes in either direction which happens only when there are rapid trades - only a stong index can provide that. Most of the times, scrips trade in a narrow range, usually after a gap up / down. But, cumulative ranges of these scrips add to volatility.

 

[columbus]

index futures will always be less volatile compared to individual stocks. to move index, you need tp move 50 stocks in same direction

we need to pick some high liquid stocks like axis bank, hdil, dlf, icici bank, infosys, tata steel, tata motors etc

stoks like hdfc, hdfc bank, acc, hero honda, ntpc, bhel will not be good as they dont move much

Hi Bandlab2,

Apart from volatility ,one should take into account the weightage
in Nifty.Going by that definition scris like HDFC,HDFCbank,Reliance
....etc should be added to the scrips mentioned by you.As a thumb
rule we should track scrips with more than 2% weightage.

 

[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(ride) TOP/BOTTOM
bands.

Virtually NO candles in bottom band through-out the
day.

 

[arti]

Many times it happens that after red and green candle piercing in lower band(as per strategy we went long),price still goes down.Or it goes up till middle avg line(20ma) and comes back.
So how u deal with such situations?Viceversa for short.

 

[columbus]

Many times it happens that after red and green candle piercing in lower band(as per strategy we went long),price still goes down.Or it goes up till middle avg line(20ma) and comes back.
So how u deal with such situations?Viceversa for short.

Yes ,it will happen sometimes when the time frame is too
short.In any case , for any time frames, it
is better a AVERAGE your trade ,strictly keeping in view the time
left for closure of market.Don't AVERAGE more than two
times in day.

 

[columbus]

1.RED+GREEN candle pair at bottom or middle band indicates
an reversal in upwards direction

2.GREEN+RED candle pair at top or middle band indicates
an reversal in downward direction.

This is a good example:

 

[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(ride) TOP/BOTTOM
bands.

5200 well before expiry is a bit surprising.

 

[Raghavacc]

Hi Columbus,

Visited this thread very very late. Tail ender!!! .

I heard so many people saying " You need just one pattern to make your living". Here just understood what that means:clapping:

Also appreciate your relentless effort to post daily charts.

Have few questions .Hope you wont mind answering them.

1. what kind of strategy do you use for trailing S/L? Exa: Say Lower band pierces a red and green .we enter: On entry where will be your S/L? then it rallies and crosses 20 SMA.Now how do you trail?

2.while piercing the candles , does the angle of band play any role in making the signal more effective? generally I have a feeling that while crossing if the band is flat it gives more powerful signal.

3. If you have any data available can you pls let me know whats your success rate under this method?

Regards
Raghav