BollingerBands

[saivenkat]

EMA crossover method has been used extensively for Long Term
view.But it can be used in conjunction with Bollinger Bands for
day trading also.

EMA-3.....White colour EMA-15.........Blue colour.




There is a marked similarity between Bolliger Bands and EMA crossover.

If EMA-3 is over EMA-15 & closer to TOP band ,it indicates a bull market
and moves away from top band (Reversal), it signals the end of rally.

Similarly,if EMA-3 is down from EMA-15 & closer to BOTTOM band ,it indicates a bear market
and moves away from band (Reversal), it signals the end of rally.

In either case if EMA-3 moves in tandem with band ,it indicates a STRONG rally.

If EMA-3 and EMA-15 move closely and the Band is narrow ,it is better to
keep away from market for time being as it indicates IN ACTIVENESS.

Thanks to TRADEWITHHUNTER.

Thanks a lot Columbus ji for coming up with the post as promised. I feel it is a great combination for making a safe positional trades.

If my observation of your chart is correct, can i add, the importance of volume in making the entry and exit of positions.


For shorting the market:

Their is huge spurt in the volume( circles marked in pink color) on the day or two before the sell off begins.During downtrend, the volume decreases.

For going long:

Again the Volume increases, ( circles marked in magenta color )

With this observation columbus ji i am expressing the doubt i have now.
During the last part of the chart, we see nifty wave is travelling down ward and is nearing the lower bollinger band, and here we see a huge surge in VOLUME AGAIN, the last two vertical towers in the chart. Is this increase in volume an indication that the LOWER BOLLINGER BAND IS going to be pierced and a vertical downfall will start.

Lastly, Columbus ji, what are the intraday settings that we can have with ema and bb indicators?

Regards
Saivenkat

 

[columbus]

Thanks a lot Columbus ji for coming up with the post as promised. I feel it is a great combination for making a safe positional trades.

If my observation of your chart is correct, can i add, the importance of volume in making the entry and exit of positions.
what are the intraday settings that we can have with ema and bb indicators?

Regards
Saivenkat

Hi SaiVenkat,

Good observation. Your observation is 100% correct.

Volume Bars should be interpreted in conjunction with position of price
bar of TOP/BOTTOM bollinger bands and EMA-3.In both STRONG bull and
bear markets we can see Strong Volume Bars.But volumes should be
studied in ISOLATION.

First 30 min and last 30 min often associated with EMOTIONS ,better not
to trade in these periods.For example the first 30 min saw some good
volumes ,one would go LONG after seeing these ,but later 30 min or so
saw the market going down.Similarly from 2.15 to 3.00 saw some good
price movement with volumes but from 3.00 to 3.30 the market went
down.

EMA12~EMA15 with Timeframe either 2min/3min appear to be good.

 

[simple_trader]

Dear columbus,

First and last 30 mins are two most important parts for day traders. I feel so personally.

First 30 mins is good scalp trading. Last 30-60 mins are very important for day traders.

Mostly big move happens in last 30-60 mins. If we are in right trade, then this period helps holding position and book around closing. I personally hold till 3:20-30PM.

Also, even we get some good trade entry (for day traders) in last 60 mins or so.

These are my personal views though.

 

[columbus]

Dear columbus,

First and last 30 mins are two most important parts for day traders. I feel so personally.

First 30 mins is good scalp trading. Last 30-60 mins are very important for day traders.

Mostly big move happens in last 30-60 mins. If we are in right trade, then this period helps holding position and book around closing. I personally hold till 3:20-30PM.

Also, even we get some good trade entry (for day traders) in last 60 mins or so.

These are my personal views though.

Dear simple_trader,

There are traders who trade in first half an hour. I personally feel ,it amounts
to Gambling.Because it does not follow any fundamental or technical anaysis.
Your post does contain the words IF WE ARE RIGHT SIDE OF THE TRADE, in fact we are striving hard to find it out.

Scalping is better executed once the indicators are formed and it takes time
for them to form depending on your timeframe.

At 3.00 if your holdings are in GREEN ,keep them running till end with strict
trailing stoplosses with no fresh positions.

 

[simple_trader]

Dear columbus,

Some of best day trading setups happen in last 60-30 mins. And normally moves are on sided in last hour, which is good for holding till last minute.

For example, I am attaching 25th ICICI chart, which moved 15 points in last 30 mins and it happened after some mins after NIFTY breakout.

In fact, due to this, i feel day trading with future is better than cash margin trading, as most broker force traders to close their position around 2:45PM.

This is mostly applicable of stocks, not the index.

So I feel last hour is very crucial for making money.

regards

 

[saivenkat]

Hi SaiVenkat,

EMA12~EMA15 with Timeframe either 2min/3min appear to be good.

Columbus ji, here in this link we could see a what probable settings that may suit for intraday and positional trades using SMA cross over and BB, discussed by savantji, Prasadam ji and by other friends.

http://www.traderji.com/equities/28224-trading-crossover-bb-37.html


Regards
Saivenkat

 

[columbus]

Dear columbus,

Some of best day trading setups happen in last 60-30 mins. roghAnd normally moves are on sided in last hour, which is good for holding till last minute.

For example, I am attaching 25th ICICI chart, which moved 15 points in last 30 mins and it happened after some mins after NIFTY breakout.

In fact, due to this, i feel day trading with future is better than cash margin trading, as most broker force traders to close their position around 2:45PM.

This is mostly applicable of stocks, not the index.

So I feel last hour is very crucial for making money.

regards

Dear simple_trader,

Yes last 30 minutes have prior data of last 300 minutes (9am~3pm).So something can be said about last 30 minutes trade.But beginnig of trading is purely based on Emotions of global cues.

I often wondered that stocks like Ril,BHEL,L&T,HDFC,ICICI ........etc...., throughout the day remained subdued and started moving after 3pm.
May be brokerage houses started closing the margin positions from 2.45pm onwards.Even Nifty Futures are not spared since it is dependent on these stocks.

Yes,Nifty future trading is good option since margin is available for a month.

 

[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.

 

[saivenkat]

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 ji,
I am reading this thread right from the beginning for the past few days. At present i have come only up to 25 page. At present i am having one small doubt, though the doubt will get cleared once i finish reading the entire thread, but i prefer to ask right now.

1) In the 6 min chart of nifty that you have given today, i see a green candle with a long wick piercing the upper BB, and immediately a small red candle also piercing the upper BB.

Now my point is sir, Do you enter into the trade immediately when the UPPER BB is pierced, i mean you will not wait for the completion of candle, or on you take position during the formation of second candle or after the the second candle is finished, ie, in this case the next small red candle.

Secondly, immediately after entry, before getting our trade confirmed, where should be the stop loss? Is it correct to place at the high of the previous candle.

This may be so elementary columbus bhai, but please clarify me, when you find time at ease.

Thanks and regards
Saivenkat.

 

[columbus]

Columbus ji,
I am reading this thread right from the beginning for the past few days. At present i have come only up to 25 page. At present i am having one small doubt, though the doubt will get cleared once i finish reading the entire thread, but i prefer to ask right now.

1) In the 6 min chart of nifty that you have given today, i see a green candle with a long wick piercing the upper BB, and immediately a small red candle also piercing the upper BB.

Now my point is sir, Do you enter into the trade immediately when the UPPER BB is pierced, i mean you will not wait for the completion of candle, or on you take position during the formation of second candle or after the the second candle is finished, ie, in this case the next small red candle.

Secondly, immediately after entry, before getting our trade confirmed, where should be the stop loss? Is it correct to place at the high of the previous candle.

This may be so elementary columbus bhai, but please clarify me, when you find time at ease.

Thanks and regards
Saivenkat.

Hi Saivenkat,

Yes , immediately after the bands are pierced by amount 2~4 points.
In case by chance if the order goes wrong NEVER PLACE ANOTHER
ORDER in the vicinity of FIRST order.

Coming to STOPLOSS ,it should not be too low or too high ,personally
I feel a stoploss equivalent to HALF THE BAND.(In the present case
around 10 points.)