BollingerWorm !!!

[timepass]

Hello Columbus, in bollingerworm, we are concerned with the movement of the 2 EMAs.. them entering / exiting the Bollinger bands. So, I have been thinking, why use candlesticks, why not line graph?? and then too, if possible, eliminate the price line altogether .. Make it much less noisy and delineates the entry / exit points better. Take a look and comment.

 

[columbus]

Hello Columbus, in bollingerworm, we are concerned with the movement of the 2 EMAs.. them entering / exiting the Bollinger bands. So, I have been thinking, why use candlesticks, why not line graph?? and then too, if possible, eliminate the price line altogether .. Make it much less noisy and delineates the entry / exit points better. Take a look and comment.

Hi timepass,

I agree with your statement 100%.In fact I posted a chart ,on similar lines at #post 48.
http://www.traderji.com/day-trading/48558-bollingerworm-19.html#post513553
In fact, if you plot price line as BLACK ,you call eliminate it TOTALLY.But nobody responded positively or negatively.I stopped it.

 

[timepass]

I guess you were way ahead of the others, this is your baby after all ..

 

[crusader]

Hi Columbus,

Thanks for this wonderful thread. I am in the process of reading all about BB and BW and intend to use it.. I have a question regarding BW... How do I use the BB(20,1)? Sorry, but I miss the point completely. How do I use it to trade?

thanx

 

[timepass]

Hi Columbus,

Thanks for this wonderful thread. I am in the process of reading all about BB and BW and intend to use it.. I have a question regarding BW... How do I use the BB(20,1)? Sorry, but I miss the point completely. How do I use it to trade?

thanx

I haven't understood it myself and wanted to ask.. but early days yet. I think first I'll spend a few months working over the basic worm itself, then ask abt the other things.

 

[columbus]

Hi Columbus,

Thanks for this wonderful thread. I am in the process of reading all about BB and BW and intend to use it.. I have a question regarding BW... How do I use the BB(20,1)? Sorry, but I miss the point completely. How do I use it to trade?

thanx

I haven't understood it myself and wanted to ask.. but early days yet. I think first I'll spend a few months working over the basic worm itself, then ask abt the other things.

Hello crusader & timepass,

If normal distribution is assumed then
BB(20,1) encloses 68% of the candles and
BB(20,2) encloses 95% of the candles.

But John Bollinger observed that BB(20,2) encloses roughly 89% of samples.
The reason is Stock market data do not follow NORMAL distribution.

More info here:
http://www.traderji.com/day-trading/48558-bollingerworm-22.html#post511623

 

[timepass]

..But John Bollinger observed that BB(20,2) encloses roughly 89% of samples.

and BB(20,1) encompasses how much ??

Also, have you experimented with other values in BB ?? like BB(15,xx) or BB (10,xx) or BB(20,2.5) etc ?? Or have you tried any EMAs other than EMA2 to outline the worm? Tell us your analysis of other values.

 

[columbus]

and BB(20,1) encompasses how much ??

Also, have you experimented with other values in BB ?? like BB(15,xx) or BB (10,xx) or BB(20,2.5) etc ?? Or have you tried any EMAs other than EMA2 to outline the worm? Tell us your analysis of other values.

Hi timepass,

BB(20,1) encompasses 68% of data .(Candles).

Here 4 parameters are involved.

1.Samples:

BB (XX,2):Lower BB like BB(15,xx),BB (10,xx) makes the Bands too narrow
hence BB (20,xx) is chosen.

2.Standard deviation:

Same effect as above.Lower SD makes the band narrow and with higher
SD there nothing great is achieved, so BB (20,2) is chosen and it is
default value also.

3.EMA
With higher EMAs the response is late.Considering 4-EMA and time frame
as 5 min ,the response is as late as 4*5=20 min.Sometimes it may prove
as Boon, in disguise.

4.Time frame

Lower TF makes the band narrow ,especially 1 min and 2 min.TF between
3min~7min is good.I prefer both 3 & 5min.

 

[nazimrushda]

Hi columbus,
i am totally confuse what are discussed here ,pls advice me final paramter to set in worm

 

[timepass]

I'm making it a heavy weekend, but elsewhere in this thread (post no. 25) you mentioned something about BB(20,1) being useful when ATR of 100 or more is seen.

I looked up investopedia and found that ATR = Average True Range. I am zero in technical terms and my only source of technical knowledge has been traderji. Now, does TT show ATR or is it something one needs to calculate manually in real time ? I mean how do I check out the ATR in real time?

PS : could you please look up my TT related query here (about intraday charts).