BollingerBands

[bijoy2526]

Boss you are right..most of the time..but sometimes..taking short position at the piercing of upper bolinger band proves to be perilious..ur stoploss wont trigger..stock price will rise so fast along the bolinger band..simply think..what will be the position..Bijoy..Bhilai

 

[columbus]

In case of some low priced Nifty stocks the range could be more than 20% to -20%.

In case of Midcap stocks the range could be upto 20% to -20%.

In case of Heavy Nifty stocks the range could be around 5% to -5%.


But in case of Nifty the range is upto 2% to -2%.(On average).

Bollinger Band method is successful in case of Price Distribution ,which is
NORMAL, that is ,if successive closes are not far removed.That is why,
BB method is quite successful in case of CHOPPY market conditions.

 

[sibumajumdar]

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.

Mr Columbus, Your clarification put me in a better platform. Thanks

Plz give me 3 indicators can be used with BB for day trd.

In 1 screen i put 3, 13, 34 (for direction) & in another BB with indicators.

IS this set up ideal for my trade? There is no substitute of experience...hence plz share it for novice like us.....SLM uncle

 

[columbus]

Mr Columbus, Your clarification put me in a better platform. Thanks

Plz give me 3 indicators can be used with BB for day trd.

In 1 screen i put 3, 13, 34 (for direction) & in another BB with indicators.

IS this set up ideal for my trade? There is no substitute of experience...hence plz share it for novice like us.....SLM uncle

Hi SLM,

Try BB,Stochastics (entry,exit,OB and OS) and RSI (OB and OS).
If your software permits, put all indicators in SINGLE screen rather
than in different screens.
A piece of suggestion ,try with 2 MNFs (sometimes).

 

[columbus]

Too many indicators makes its clumsy.

 

[sibumajumdar]

Hi SLM,

Try BB,Stochastics (entry,exit,OB and OS) and RSI (OB and OS).
If your software permits, put all indicators in SINGLE screen rather
than in different screens.
A piece of suggestion ,try with 2 MNFs (sometimes).

Mr Columbus, Your suggestion is well received. I shall do trade with RSI & stoch & let u know the out come. Plz tell me what advanatage is with 2 mnfs & how to ride them to our advantage. Thanks....SLM uncle

 

[columbus]

Mr Columbus, Your suggestion is well received. I shall do trade with RSI & stoch & let u know the out come. Plz tell me what advanatage is with 2 mnfs & how to ride them to our advantage. Thanks....SLM uncle

Basically if one mnf goes out of our way , your use the second
mnf to moderate (Average) at a substantial distance away from
the previous mnf ,to our advantage sometimes.Of course it all
depends on the time left for closure of market.( atleast 2 hours).

 

[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]

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]

Caution:Light on Long side.The last candle moved out of
the top band.