BollingerBands

[columbus]

Lower BB boundary EOD today on daily chart is at 4970. Nifty closed at 4850. Can we expect some kind of bounce atleast upto 4950 in the next day or two ?

KKR,
3 months back we corrected by 500 points,
from 5100 to 4600.The next story is known to
everybody.We corrected for 10/11 days (barring
for couple of small bounces) but this is a straight
6 days fall till now.

 

[rajputz]

KKR,
3 months back we corrected by 500 points,
from 5100 to 4600.The next story is known to
everybody.We corrected for 10/11 days (barring
for couple of small bounces) but this is a straight
6 days fall till now.

and what levels you think it can fall...last time 11 days 500 points down...this time 6 days..450 points...you think it can go more or end...i think tomorrows target will be 4750 or pull back from 4820...lets c

 

[columbus]

BB(20,2) of nifty futures on time frame 4,6min
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.

The above chart shows candles with NO wicks (by sending them to
Background).It helps in easy interpretation.

 

[Raghavacc]

Mr Raghav, thanks for your chart. not only it gives views of last a few days but also it contains explanatory note regarding entry & exit supported with stoc peak/trough. For a raw person like me it is extremely useful. Hope to see many more from your side. Thanks again & God Bless U & All......SLM

Hi Sibu,

Got overoccupied with my personal agenda and had to face hard time.Virtually couldn't track the market for last 2 weeks.Not repenting for missing the move because Market is a city bus. Miss one - another comes.Ultimately I believe both market and life are same in nature i.e:Both are uncertain.Hence it helps if we bring in lessons learn't in life to the market.Anyhow Will start posting gold charts from today.

Regards
Raghav

 

[columbus]

BB(20,2) of nifty futures on time frame 4,6min are presented below.

Go long when Red,Green candles pierce the bottom band and wait for 15minutes
for confirmation , otherwise come out with stoploss

Go short when Green,Red candles pierce the top band and wait for 15minutes
for confirmation , otherwise come out with stoploss

Otherwise continue with TREND if candles graze(ride) TOP/BOTTOM
bands.

 

[Raghavacc]

Hi Columbus ,

One more classical example of how effective the combined BB & Stoch can be.

Just analysing one of the trades to understand how powerfull these 2 indicators can be.

A Buy signal got generated @ 4822 ( 6 Min chart) as per BB method.Then it came all the way down to 4776 ( Panic stage for amateurs).here the risk apetite also matters.This is a add stage for professionals as Stoch turned upside from OS zone.So placing the S/L @the tail of the big red candle worked and any add here generated huge gain.

One more observation. At latter part of the day the Stoch stayed in OB for more than 10 bars. So going by indicator & ST bro tommorrow we should touch 4950 .

Lets see whether market agrees with us!!.

Regards
Raghav

 

[columbus]

Hi Columbus ,

One more classical example of how effective the combined BB & Stoch can be.

Just analysing one of the trades to understand how powerfull these 2 indicators can be.

A Buy signal got generated @ 4822 ( 6 Min chart) as per BB method.Then it came all the way down to 4776 ( Panic stage for amateurs).here the risk apetite also matters.This is a add stage for professionals as Stoch turned upside from OS zone.So placing the S/L @the tail of the big red candle worked and any add here generated huge gain.

One more observation. At latter part of the day the Stoch stayed in OB for more than 10 bars. So going by indicator & ST bro tommorrow we should touch 4950 .

Lets see whether market agrees with us!!.


Regards
Raghav

Hi Rahav,

We discussed a lot about BB+Stoch chart ( http://www.traderji.com/day-trading/27421-bollingerbands-6.html#post401641 ).
In case of a strong trending markets STOCH helps,but in case of range-bound market also,RSI,will help.

 

[Raghavacc]

There was not enough good opportunities except the one at 19.30.

Regards
Raghav

 

[columbus]

There was not enough good opportunities except the one at 19.30.


Regards
Raghav

Raghav,

For Nifty Futures you use BB(20,2) but whereas you use BB(9,2) for
Gold,Any specific reason?

 

[Raghavacc]

Raghav,

For Nifty Futures you use BB(20,2) but whereas you use BB(9,2) for
Gold,Any specific reason?

No Columbus,

Sorry for not mentioning specifically that Its a trial and error and I am testing 2 schemes.

1.10 Min TF with (20,2)
2.15 Min TF with (9,2)

Agree with your earlier suggestion that in (9,2) cloud is too narrow and can generate more trades with early exits.

Scheme number 1 seems to work quite well. However too early to conclude. Let me carry on this phase for next 1 to 1.5 months.

still need to find answers for 2 questions:

1.How many bars do we need to consider in OS/OB for concluding the non dissipation of selling /buying .

2. Inclusion of RSI instead of stoch or with stoch.Basic intention is to keep it more simple with less indicators.

Here is 10 Min chart with (20,2)

Regards
Raghav