BollingerBands

[DanPickUp]

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[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 after taking position, otherwise come out with stoploss

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

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

 

[columbus]

In a Jiffy we have reached the TOP band and it is
time to be cautious.

 

[veluri1967]

In a Jiffy we have reached the TOP band and it is
time to be cautious.

Hi,

My first intraday profit was by following Bollinger Bands.

Since I am interested in Bollinger Bands, I would like to know much about it.

Can u spare sometime to clarify following doubts, about the setup.

1. What is the best timeframe for intraday as of your observation?
2. As per u, we should go long if the bottom BB pierced by Red and Green candles successively. What happens if the third candle formed is again a Red candle and the price slips steadily?
3. U have been suggesting that we should ride the trend as the price grazes the BB. Here, in case of above point, we should take a Loss and reverse position and ride the trend. Isnot it?
4. How to establish a trend using BB?

Thanx in advance.

 

[columbus]

Hi,

My first intraday profit was by following Bollinger Bands.

Since I am interested in Bollinger Bands, I would like to know much about it.

Can u spare sometime to clarify following doubts, about the setup.

1. What is the best timeframe for intraday as of your observation?
2. As per u, we should go long if the bottom BB pierced by Red and Green candles successively. What happens if the third candle formed is again a Red candle and the price slips steadily?
3. U have been suggesting that we should ride the trend as the price grazes the BB. Here, in case of above point, we should take a Loss and reverse position and ride the trend. Isnot it?
4. How to establish a trend using BB?

Thanx in advance.

Hi Veluri,
Good to know that you made some money out of BB.

There is plethora of information on BB on internet.

1. What is the best timeframe for intraday as of your observation?

Any timeframe between 3~10Min is good.It depends on your
convenience.I am quite comfortable with 4&6 min.You can try
variable TF in the initial stages.

2. As per u, we should go long if the bottom BB pierced by Red and Green candles successively. What happens if the third candle formed is again a Red candle and the price slips steadily?

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


3. U have been suggesting that we should ride the trend as the price grazes the BB. Here, in case of above point, we should a Loss and reverse position and ride the trend. Isnot it?

In case of Grazing , successive candles are of same colour.Yes once the
grazing is over,put the order in reverse direction.Even if you are WRONG
there is no harm in trying ADDs.Avoid putting too many stoplosses.


4. How to establish a trend using BB?
check the direction of bands with horizontal line.(Rough estimation)

 

[DanPickUp]

Hy columbus

Some of your most valuables readers recommended me you thread.

So, I thought I will see that and now I am here. Hope you do not mind about that.

I do not trade Indian market, but what you show can be implemented all over the world in any market.

I have to say thank you for your valuable work and I wish, you continue with your work and do not let you interrupted, if I make any comments on stupid comments from stupid boys in the forum.

Take care

DanPickUp

 

[sibumajumdar]

Mr Columbus, I keenly follow your post regularly & do int day trading with double BB (dev 2.10 & 2.25) accompanied (for confirmation) by macd/rsi/trix and of course ADX as a must to judge the strength of the trend. Happy to say that most of the time i make profit with my mnf 1 lot. So u deserved to get thanks for the same. One clarification plz..... " Wait for 15 min for confirmation after taking position". Within this period something drastic may happen. To avoid this should we apply SL or just watch. Plz elaborate. Thanking...SLM uncle

 

[columbus]

Mr Columbus, I keenly follow your post regularly & do int day trading with double BB (dev 2.10 & 2.25) accompanied (for confirmation) by macd/rsi/trix and of course ADX as a must to judge the strength of the trend. Happy to say that most of the time i make profit with my mnf 1 lot. So u deserved to get thanks for the same. One clarification plz..... " Wait for 15 min for confirmation after taking position". Within this period something drastic may happen. To avoid this should we apply SL or just watch. Plz elaborate. Thanking...SLM uncle

Hi SLM,

Good to know that your are making decent money with your setup.
Somewhere in other thread I mentioned that I follow BB,Stochastics and
RSI in that order. I had bad experience with MACD.

Mainly the sentence .. wait for 15minutes for confirmation after taking position, otherwise come out with stoploss is to minimize your loss
or one should follow 20-point stoploss (20*20=400), if suffient time is left
one can go for ADD in opposite direction.It all depends on risk appetite of
individual.

 

[sibumajumdar]

Hi SLM,

Good to know that your are making decent money with your setup.
Somewhere in other thread I mentioned that I follow BB,Stochastics and
RSI in that order. I had bad experience with MACD.

Mainly the sentence .. wait for 15minutes for confirmation after taking position, otherwise come out with stoploss is to minimize your loss
or one should follow 20-point stoploss (20*20=400), if suffient time is left
one can go for ADD in opposite direction.It all depends on risk appetite of
individual.

Mr Columbus, Your prompt clarification noted with thanks. U mean after hitting SL we should ADD in opposite direction. Nah.

Next week i shall go with the set up U stated above. Will U mind to share your bad experience with MACD. Iam a learner & using max INDICATORS and as a result some times get confused. Plz tell me what should be ideal combination with BB to get correct direction. U mean ADX, TRIX, W%R does not suit for day trading. I use PIB & also seperate set up with 3 ,13, 34 MA cross over. Eagarly waiting for your guidance. Thanks...SLM ungle

 

[columbus]

Mr Columbus, Your prompt clarification noted with thanks. U mean after hitting SL we should ADD in opposite direction. Nah.

Next week i shall go with the set up U stated above. Will U mind to share your bad experience with MACD. Iam a learner & using max INDICATORS and as a result some times get confused. Plz tell me what should be ideal combination with BB to get correct direction. U mean ADX, TRIX, W%R does not suit for day trading. I use PIB & also seperate set up with 3 ,13, 34 MA cross over. Eagarly waiting for your guidance. Thanks...SLM ungle

Dear SLM,

After hitting Stoploss (around 20 points away) plus waiting for few
candles ,your are away 30~40 points away.Adding at this juncture
does do much harm, provided there is sufficient time for closure of
the market.Of course it depends on your trading style.

Long ago when I started with MACD, I placed my orders at -3 and closed
at +3.Soon I was caught on WRONG foot because the values of MACD
were seen at -5/+5 ~ -8/+8.

Better to stick to 2 or 3 indicators only and not more.

I love to hate ADX,somehow.I did not try the others.

EMA crossover is a good one but it is a lagging indicator.
There is some room for experimentation.