BollingerWorm !!!

[kgsirasangi]

columbus,

For details of above article, and graphs, please refer to

http://www.investopedia.com/articles/forex/06/BBInsideDay.asp#axzz1qOARZXVf

For afl of above strategy, please refer to

http://www.traderji.com/amibroker/68455-afl-bollinger-band-strategy.html

Regards

 

[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.
(Or as per the volatility on that day).

 

[columbus]

Thanks Columbus for the answer.

You are right, that i was interpreting the strategy differently. My next question is how do you define choppy and trending market for this strategy. Are there any fixed rules you follow for defining it? The rule 6 says -" If candles are sandwiched between OUTER of BB(20,1) and INNER band BB(20,2) then ride the trend" but that is true for every signal. Every signal we get through this strategy is in between these two bands.

Please clarify.

Thanks for your patience and time.

Regards,

Rahul

Rahul,

Just trade with BB and SMA-20(Laxman Rekha) for few days.You will find
need of BB(20,1) automatically.
Have watch on Y-axis divisions,if the divisions is less than 10 you call a
CHOPPY day.Otherwise trending day.They keep on changing with time.
In the beginning ,they barely start with ONE.

 

[trade4joisar]

Rahul,

Just trade with BB and SMA-20(Laxman Rekha) for few days.You will find
need of BB(20,1) automatically.
Have watch on Y-axis divisions,if the divisions is less than 10 you call a
CHOPPY day.Otherwise trending day.They keep on changing with time.
In the beginning ,they barely start with ONE.

Columbus,

Can you show me this in chart where it happened OR any other links where you already explained. ?

 

[timepass]

Columbus,

Can you show me this in chart where it happened OR any other links where you already explained. ?

See the markings in red and white in the chart below.

I personally don't notice them, but they are pivotal to Columbus's methodology.

 

[timepass]

Bollingerworm for 30th March.

 

[timepass]

Bollingerworm for 2nd April, 2012.

 

[timepass]

Bollingerworm for 4th April

 

[timepass]

Bollingerworm for 9th April.

 

[SexyTrader]

I think Bands are better than Worms :thumb: :rofl: