BollingerWorm !!!
- Thread starter columbus
- Start date
1.Use standard Bollinger Bands ,that is, bb(s,20,2).
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
1.Use standard Bollinger Bands ,that is, bb(s,20,2).
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
Columbus, the transparent bars don't show it, but the way I figure today's worm is that the only true signal which satisfied condition no. 3 above, came at 12.20 with the red bar piercing the upper band and re-entering (shown with red arrow). No corresponding buy signal came as per the worm. Even the 15.25 green bar did not pierce the band... please confirm.
Columbus, the transparent bars don't show it, but the way I figure today's worm is that the only true signal which satisfied condition no. 3 above, came at 12.20 with the red bar piercing the upper band and re-entering (shown with red arrow). No corresponding buy signal came as per the worm. Even the 15.25 green bar did not pierce the band... please confirm.
Today ,Worm had played very well. I always shift between 3min and 5 min time frames for getting
good trades.It is advisible not to trade when volatility is low or band width is less.Even if you trade
then you should be happy for very small gains (Scalping).
Between 1215~1245 ,virtually all the candles were outside the bands signalling an action from your
side.Similarly between 1430~1500 the candles were outside the bands.Again another oppotunity
at 1500 ( to 1525) was spotted on EOD charts.
Anyway at the fag-end it hardly matters if it touches midline or band,because making profit is more
important.Today the candle was 10 points away from the midline.
The 12.15 candle touched the band but didn't pierce it. The first signal came at 12.20 candle, which closed at 5567.1 . If someone sold at that point, he wouldn't have made much, and would have had to wait a lot to clear the position. So, unless someone went on selling at every candle that pierced the band and re-entered (averaging on every rise), he would've been handicapped by the sharp rise thereafter.
In the event, the first signal turned out to be a red herring, because the subsequent two candles just dilly-dallied and then the third following candle, the 12.35 candle, shot up and up and up.
My point is, that the very first signal of a candle piercing the band and re-entering should not be taken as the entry point. Some confirmation signal may be defined.
Thanks.
PS : on BB(20,1), the fist "sell" signal came at 12.10 candle and was followed by "sell" signals continuously for the next 90 minutes or so.. Just an observation.
In the event, the first signal turned out to be a red herring, because the subsequent two candles just dilly-dallied and then the third following candle, the 12.35 candle, shot up and up and up.
My point is, that the very first signal of a candle piercing the band and re-entering should not be taken as the entry point. Some confirmation signal may be defined.
Thanks.
PS : on BB(20,1), the fist "sell" signal came at 12.10 candle and was followed by "sell" signals continuously for the next 90 minutes or so.. Just an observation.
Hi timepass,
The words "pierce","Graze" ,etc ,do not appear in BollingerWorm but do appear
in Bollinger bands.BB generally deal with 'Individual candle' ,but BW deals with
group of candles because ,it deals envelope which are drawn 'below' and 'above'
of each candle.Here we discuss about proximity of envelope with respect to BANDS.
I feel the problems are better addressed in BOLLINGER WORM.
We always treat the lower band as SUPPORT and top bands as RESISTANCE.
So we place always a BUY on Lower band and either SELL/SHORTSELL on top band.
As per theory, 95% of the samples are found within the BANDS and just 5% falls
outside the bands. We watch at these 95% and take action ,accordingly,at other 5%.
[BB (20,2).]
The first BUY signal came at around 11.50 (5 candles prior mentioned by your arrow).
Piece of advice:
In tradetiger one can add 8 studies.You used only one study.[bb(20,2)]
You can add bb(20,1) and S-20.For thicker bands you can use bb(20,2.01)
bb(20,2.02),bb(20,2.03)...........If you think they are bothersome ,you can hide.
The words "pierce","Graze" ,etc ,do not appear in BollingerWorm but do appear
in Bollinger bands.BB generally deal with 'Individual candle' ,but BW deals with
group of candles because ,it deals envelope which are drawn 'below' and 'above'
of each candle.Here we discuss about proximity of envelope with respect to BANDS.
I feel the problems are better addressed in BOLLINGER WORM.
We always treat the lower band as SUPPORT and top bands as RESISTANCE.
So we place always a BUY on Lower band and either SELL/SHORTSELL on top band.
As per theory, 95% of the samples are found within the BANDS and just 5% falls
outside the bands. We watch at these 95% and take action ,accordingly,at other 5%.
[BB (20,2).]
The first BUY signal came at around 11.50 (5 candles prior mentioned by your arrow).
Piece of advice:
In tradetiger one can add 8 studies.You used only one study.[bb(20,2)]
You can add bb(20,1) and S-20.For thicker bands you can use bb(20,2.01)
bb(20,2.02),bb(20,2.03)...........If you think they are bothersome ,you can hide.
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