BollingerBands

[columbus]

Dear Coloumbus & Bandlab2,

Thankyou for your prompt reply's and help they are great, Mr Coloumbus sir am i correct in thinking that if Piercing is 2 diffrent candles then grazing is defined by two candles of the same colour??

Also when seeing piercing/grazing occur do you wait for the third candle to retrace into the second one slightly to gain a better entry. Am i correct in thinking the 3rd candle is the ENTRY candle?

I notice you use this trading the sensex what is your optimal time frame which yields the best results>, i ask as i am looking to try it on the ftse.

Once again Thank you so much you are a both fantastic. If you are ever visiting the UK let me know.
Regards
MDS

Dear MDS,

Thanks for your offer once again.
Yes ,your understanding is perfect.
In case of PIERCE ,two different colour candles are involved.
In case of GRAZING ,a series of candles of same colour is involved.(roughly)
(Green in case of LONG ,red in case of SHORT)

Since There is time difference in our time zone ,I am unable to
trade in FTSE.Interestingly FTSE or better ,European markets have
impact on our markets because sometimes there is a marked difference
between 1300~1400 IST is observed in our markets.

 

[rajputz]

Dear MDS,

Thanks for your offer once again.
Yes ,your understanding is perfect.
In case of PIERCE ,two different colour candles are involved.
In case of GRAZING ,a series of candles of same colour is involved.(roughly)
(Green in case of LONG ,red in case of SHORT)

Since There is time difference in our time zone ,I am unable to
trade in FTSE.Interestingly FTSE or better ,European markets have
impact on our markets because sometimes there is a marked difference
between 1300~1400 IST is observed in our markets.

What i personally think is that before trading the foreign market one should have insight of the currency flow in that country. what i mean is: -

" Once i went to see off my cousin brother for england from delhi with my Uncle. When they were boarding, my uncle who have already lived there said - wahan jake job cheez khareedoge use pound-Rs. convert kar ke mat dekhna, otherwise chai b nahi peoge" t

he whole point is that one should have worked in real money in that country so that he know how the money flows there. we know that 10 paise matters alot in 100 rs. share but same in pound is different.

it is a human nature that when ever we will try to trade in FTSE or other Foriegn exchange we will have hard time understanding the currency. we will try to compare the prices with INR, and that is to be avoided all the times.....

hope you get what i mean

 

[mds1]

Mr Coloumbus thanks for the reply thats great info.

Are there any other factors you look for before entering a trade i.e. do you wait till bands are tight when looking for grazing and then when bottom and top band expand then you look to enter a grazing trade?

Also what do you look for when piercing what should have come before it? Or is it simply and ober bought or over sold level on RSI?

Also what are the time frames you trade the sensex on i trade 1 min charts is this time frame too fast for your style of trading.

Once again thanks

 

[rajputz]

it is off the discussion but might help in FTSE view for indians....sorry for off the topic

 

[columbus]

What i personally think is that before trading the foreign market one should have insight of the currency flow in that country. what i mean is: -

" Once i went to see off my cousin brother for england from delhi with my Uncle. When they were boarding, my uncle who have already lived there said - wahan jake job cheez khareedoge use pound-Rs. convert kar ke mat dekhna, otherwise chai b nahi peoge" t

he whole point is that one should have worked in real money in that country so that he know how the money flows there. we know that 10 paise matters alot in 100 rs. share but same in pound is different.

it is a human nature that when ever we will try to trade in FTSE or other Foriegn exchange we will have hard time understanding the currency. we will try to compare the prices with INR, and that is to be avoided all the times.....

hope you get what i mean

Dear rajputz,

As rightly pointed out by your uncle ,it better not to compare
with our currency with that of local (foreign) currency.The
insight of local currency is prerequisite for Index Trading.

 

[columbus]

Mr Coloumbus thanks for the reply thats great info.

Are there any other factors you look for before entering a trade i.e. do you wait till bands are tight when looking for grazing and then when bottom and top band expand then you look to enter a grazing trade?

Also what do you look for when piercing what should have come before it? Or is it simply and ober bought or over sold level on RSI?

Also what are the time frames you trade the sensex on i trade 1 min charts is this time frame too fast for your style of trading.

Once again thanks

Mr MDS,
After tightening, the following action takes place in either directions.
Grazing happens once in a day in most cases.In this scenario ,in range
bound markets ,I rely on RSI.
One min Timeframe appears NOISY,but you can use it for last 60 mins
or so.In this way ,one drawback is ,the complete action in the same
time frame for the day is LOST.

 

[murthymsr]

Here is the afl i wrote for this. I have 4 entry rules
...........

Thanks bandlab2 for the wonderful AFL for the chart and explorations.

Adding the Buy stocks to a watchList and the Sell stocks to another will further enhance thew utility of this AFL.

You may think of adding the code to achieve this additional functionality.

The additional code may be something like:

WLBuy = Param( "Buy WatchList", 61, 0, 63, 1);
WLSell = Param( "Sell WatchList", 62, 0, 63, 1);
----------
IIf( C>0, CategoryRemoveSymbol( "", categoryWatchlist,WLBuy,Null);
if( LastValue(Buy) == True)
{
CategoryAddSymbol( "", categoryWatchlist, WLBuy );
}

IIf( C>0, CategoryRemoveSymbol( "", categoryWatchlist,WLSell),Null);
if( AND LastValue(Sell) == True)
{
CategoryAddSymbol( "", categoryWatchlist, WLSell );
}

Regards.

murthymsr

 

[mds1]

Dear Mr Coloumbus
Thanks for the info you are a star!

Having now looked at a 5 min time frame for the ftse it seems that that may be best although i do only get 1 min and 5 min time frames nothing in between, do you think a 3/4/6 min are useful? and be better suited to your style i will try your technique this week and let you know how it works!

The only thing i worry about is for example in "grazing" style when 2 green bar have formed above the top bollinger on the third candle i enter it seems like much of the move has gone, do you wait for a slight pull back into the second green candle before entering or just enter as soon as the third candle opens and if so is this the case for piercing but just the other way round?? Am i correct in thinking the third candle is always the entry candle??

You are a very kind chap for helping me and i have a method i use currently that i wish to send you but i cant seem to be able to send a PM as i do not have this function "turned on" and am unaware of how to do this.

many thanks mds

 

[Mangafreakz]

Dear Mr Coloumbus
Thanks for the info you are a star!

Having now looked at a 5 min time frame for the ftse it seems that that may be best although i do only get 1 min and 5 min time frames nothing in between, do you think a 3/4/6 min are useful? and be better suited to your style i will try your technique this week and let you know how it works!

The only thing i worry about is for example in "grazing" style when 2 green bar have formed above the top bollinger on the third candle i enter it seems like much of the move has gone, do you wait for a slight pull back into the second green candle before entering or just enter as soon as the third candle opens and if so is this the case for piercing but just the other way round?? Am i correct in thinking the third candle is always the entry candle??

You are a very kind chap for helping me and i have a method i use currently that i wish to send you but i cant seem to be able to send a PM as i do not have this function "turned on" and am unaware of how to do this.

many thanks mds

Go to User CP , Under "Settings and options" go to Edit options and there under Messaging and Notification header you will find Enable Private messaging , check the box and you should be able to send PMs.

 

[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.