BollingerBands

[munnabhai208]

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

Sir,Does it mean that a pause in upside?

 

[columbus]

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

Sir,Does it mean that a pause in upside?[/QUOTE]

Hi Munnabhai,

TWO things can happen.
1.PAUSE in upside and reversal on cards?
2.Strong Upmove , so that last few candles are taken inside.

Personally I believe in FIRST one.

 

[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.

 

[mds1]

Dear Mr coloumbus sir

I hope you are well, have you ever tried using this system on forex pairs, i will back test this weekend and update you with my findings.

Thanks again

 

[columbus]

Dear Mr coloumbus sir

I hope you are well, have you ever tried using this system on forex pairs, i will back test this weekend and update you with my findings.

Thanks again

Hi MDS,

Good to see you in thread after a while.I have not tried FOREX yet.
I hope this message helps.
http://www.traderji.com/day-trading/27421-bollingerbands-2.html#post415157

 

[columbus]

EOD chart of Nifty of last 5 months or so, ending with 05.03.10.

 

[mds1]

Ok Mr Colombus

The system is not good for forex but i looked at the dax ftse on 1hour charts and the results are fabulous please do have a look, not good for grazing but for piercing they are very profitable,
After much thought i think it best to place your stop at the low or high of either red/green candle which ever one is furthest away if you like risk and nearest one if you are a little more cautious,

once the piercing has taken place either go long when the high of the last "piercing candle" is broken and at the bottom bolli.
Or short when low of the "piercing candle" is broke.

Measure the last 1 hour piercing candle and place your limit order exactly the same number of points above the high or low of the last piercing candle. I.e "Measured move"

I personally think that when placing limit orders you can place the order at 90% of the measured move instead of 100% as i beleive that the institution etc have their sytems setup to often not allow the completion of the measured move, as they know many people trade like this.

I know some one will disagree with this but backtest it for your self and you will see the winners thanks to Mr coloumbus' help.
You can also maybe place in a break even stop once you get to around 40% of the measured move, although i have not looked into this deep enough but this may offer those of you a little more protection.

Remember guys this is a longer term trade and can take upto 6-7 hours to be completed and patience is required.

Guys do have a look and let me know your thoughts positive or negative

Thanks again to the only forum in the world where for once we all want to help each other and not argue

Regards MDS

 

[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]

Ok Mr Colombus

The system is not good for forex but i looked at the dax ftse on 1hour charts and the results are fabulous please do have a look, not good for grazing but for piercing they are very profitable,
After much thought i think it best to place your stop at the low or high of either red/green candle which ever one is furthest away if you like risk and nearest one if you are a little more cautious,

once the piercing has taken place either go long when the high of the last "piercing candle" is broken and at the bottom bolli.
Or short when low of the "piercing candle" is broke.

Measure the last 1 hour piercing candle and place your limit order exactly the same number of points above the high or low of the last piercing candle. I.e "Measured move"

I personally think that when placing limit orders you can place the order at 90% of the measured move instead of 100% as i beleive that the institution etc have their sytems setup to often not allow the completion of the measured move, as they know many people trade like this.

I know some one will disagree with this but backtest it for your self and you will see the winners thanks to Mr coloumbus' help.
You can also maybe place in a break even stop once you get to around 40% of the measured move, although i have not looked into this deep enough but this may offer those of you a little more protection.

Remember guys this is a longer term trade and can take upto 6-7 hours to be completed and patience is required.

Guys do have a look and let me know your thoughts positive or negative

Thanks again to the only forum in the world where for once we all want to help each other and not argue

Regards MDS

Dear MDS,

As rightly pointed out by you ,basically this method is better suited
for Intraday trading.

Funny enough most of the FOREX people advocate this method.