BollingerWorm !!!

[columbus]

Hello Columbus,

It shows a early exit at 2.30 PM and we are missing the uptrend. How to handle this situation?
Thanks

Hi thanibee,

You are correct.It did show a early exit at 2-30.But at 2.45 the candle came
down to 20-SMA line.You can place a MINIFTY at this place.
Generally, instead of placing one lot of NIFTY, prefer placing 2 lots of MINIFTY.
2 MINIFTY lots at the top/bottom band.
1 MINIFTY lot at SMA-20.

 

[thanibee]

Hi thanibee,

You are correct.It did show a early exit at 2-30.But at 2.45 the candle came
down to 20-SMA line.You can place a MINIFTY at this place.
Generally, instead of placing one lot of NIFTY, prefer placing 2 lots of MINIFTY.
2 MINIFTY lots at the top/bottom band.
1 MINIFTY lot at SMA-20.

I only play with 1 lot of Nifty.
So I need to enter with two lots of MINIFTY, exit at top/bottom band (both lots). If 20-SMA line is crossed, try our 'luck' with 1 lot of MINIFTY?

 

[columbus]

I only play with 1 lot of Nifty.
So I need to enter with two lots of MINIFTY, exit at top/bottom band (both lots). If 20-SMA line is crossed, try our 'luck' with 1 lot of MINIFTY?

Hi thanibee,

The other advantage of using 2 minifty instead of nifty is sometimes
a better average.

A.There is nothing wrong in placing BUY at "A".
B.But it was proved wrong after some time.It was solved by placing another BUY order at "B".

Averaging is good to some extent.Do not keep AVERAGING because Averaging many times
indicate ,ONE GOT THE WRONG TREND.Accept the mistake ,come out of the trade and
do not trade for next half an hour or hour so.

 

[columbus]

1.Use standard Bollinger Bands ,that is, bb(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 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 guidance in normal case also.

6.If candles are sandwiched between OUTER of BB(20,1) and INNER band
BB(20,2) then ride the trend .

7.If either ema-2H or ema-2L is cut twice by either BB(20,2),BB(20,1) or
SMA-20 in quick succession ,it indicates a END of a trend.

8.Continuation is indicated if both ema-2H and ema-2L are cut by SMA-20
and/or BB(20,1) and/or BB(20,2).

9.If the trade goes against you and if the divisions on Y-axis is not more
than 10,in that case you can add ONE or TWO trades,atleast 5 points apart.

 

[rrd6f4]

Thanks for the quick reply.

I am not a day trader, so i was thinking of using this same method on daily charts using options. My observation says it can be used the same way for daily time frame. What is your opinion about it?

Thanks,

Rahul

 

[tinchu76]

Hi thanibee,

The other advantage of using 2 minifty instead of nifty is sometimes
a better average.

A.There is nothing wrong in placing BUY at "A".
B.But it was proved wrong after some time.It was solved by placing another BUY order at "B".

Averaging is good to some extent.Do not keep AVERAGING because Averaging many times
indicate ,ONE GOT THE WRONG TREND.Accept the mistake ,come out of the trade and
do not trade for next half an hour or hour so.

Wow, That's another Imp. advice from an experienced trader.: clapping:
any specific reason ....may be to overcome emotions.....?

 

[columbus]

Thanks for the quick reply.

I am not a day trader, so i was thinking of using this same method on daily charts using options. My observation says it can be used the same way for daily time frame. What is your opinion about it?

Thanks,

Rahul

Hi Rahul,

With same settings ,you can as well use it for daily frame.

 

[columbus]

1.Use standard Bollinger Bands ,that is, bb(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 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 guidance in normal case also.

6.If candles are sandwiched between OUTER of BB(20,1) and INNER band
BB(20,2) then ride the trend .

7.If either ema-2H or ema-2L is cut twice by either BB(20,2),BB(20,1) or
SMA-20 in quick succession ,it indicates a END of a trend.

8.Continuation is indicated if both ema-2H and ema-2L are cut by SMA-20
and/or BB(20,1) and/or BB(20,2).

9.If the trade goes against you and if the divisions on Y-axis is not more
than 10,in that case you can add ONE or TWO trades,atleast 5 points apart.

 

[columbus]

1.Use standard Bollinger Bands ,that is, bb(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 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 guidance in normal case also.

6.If candles are sandwiched between OUTER of BB(20,1) and INNER band
BB(20,2) then ride the trend .

7.If either ema-2H or ema-2L is cut twice by either BB(20,2),BB(20,1) or
SMA-20 in quick succession ,it indicates a END of a trend.

8.Continuation is indicated if both ema-2H and ema-2L are cut by SMA-20
and/or BB(20,1) and/or BB(20,2).

9.If the trade goes against you and if the divisions on Y-axis is not more
than 10,in that case you can add ONE or TWO trades,atleast 5 points apart.

 

[rrd6f4]

Hi Columbus,

I have attached an image showing today's signals. Out of 5, 3 resulted in profit. 3rd and 4th signal resulted in loss. How to avoid them? Did you take them?

Thanks

Rahul