Trading With CrossOver And BB

[docvijay4u]

We Should Watch Price Action With Whatever System We Use Over N Over Again.... Listening To SMA's BB's Candlesticks What They Are Telling Us Forget Everything Else......

Thanks.

well..How do you guys maintain the patience..Although i back myself for following 10 or 15 mins TF but i get a bit impatient when i see prices going up and down..

 

[moto143]

well..See this chart Doc..it's a 5 min TF Nifty Intrday chart...from my Limited knowledge i feel we are in downtrend..what you make out of this chart?

Sorry if my Interpretation of chart is not correct..I'm still in learning phase.

Does the second red candlestick from the left suggest we are in the downtrend?Crossover was at 3553 i guess.

 

[docvijay4u]

We Don't Analyse While Day Trading Whether We Are In DownTrend Or UpTrend. We Just Buy When Confirmation Of Bullish CrossOver Comes, And Sell When Confimration Of Bearish CrossOver Comes. For Avoiding WhipSaw We Use 15 Min TF, Trading Possibilities Changes When We Choose Different TF But Strategy Remains The Same.

Thanks.

well..See this chart Doc..it's a 5 min TF Nifty Intrday chart...from my Limited knowledge i feel we are in downtrend..what you make out of this chart?

Sorry if my Interpretation of chart is not correct..I'm still in learning phase.

Does the second red candlestick from the left suggest we are in the downtrend?Crossover was at 3553 i guess.

 

[moto143]

Thanks..So can you tell me whether the second last red candlestick is a signal of bearishness arising?? a Signal for shorting?

yes..like you mentioned even i should try to trade using 10 or 15 mins TF..i get a bit scared seeing the price moments in lower TF.

 

[docvijay4u]

Hmm... If You Apply BB You Will See Price Is Moving In Contracted Zone, Playing Here Is Different Game. When Price Pierce Above Upper BB You Sell And When Price Pierce Below Lower BB You Buy.

If You'r Using 5 Min BB. Signal For Short Came Around 3625 Then One Should Use Upper TF Like 10-15 Min For Follow Up For Avoiding WipSaw Which Might Lead To Prematurly Ending Of Good Trade Or Trapping In Bad Trade.

Thanks.

Please Read Below Post Regarding Milking Out Of BB By Prasad:

doc.

see the chart.

1.30 -1.45 bar, pierced upper band and came down upto 9sma,
1.45-2.00 bar, started above 9 sma touched it, and gone upto BB.

these kind of moves give you small profits, but you have to be on your toes.

Thanks..So can you tell me whether the second last red candlestick is a signal of bearishness arising?? a Signal for shorting?

yes..like you mentioned even i should try to trade using 10 or 15 mins TF..i get a bit scared seeing the price moments in lower TF.

 

[moto143]

Thanks Doc.

I was trying to get the signals using only SMA's..Never thought about using BB.

Thanks for Quoting Prsadam's post..which is the 9sma line which he talks about in the chart?

 

[prasadam]

Hi Doc and Prasadam,

Even am following savant Ji's method..Are you guys doing Intraday using this method? if yes, at what time frame??

welcome moto143.

as rightly said by Doc. here we follow only sma cross over and BB is a supporting indicator.

 

[ash.paul]

Anyone playing the BB squeeze breakouts can also have a look into strategies developed by John Carter and featured in his books and its quite well know among traders. It's based on volatility and uses Bollinger bands and Keltner Channels and a momentum index oscillator. Your looking for quiet periods when the bollinger bands narrow in width to the point that they are actually trading inside the Keltner channels. This signals the market is taking a breather, building up steam for its next move. The trades signals when the bollinger bands then move back outside the keltner channels. The momentum oscillator is 12 period. If above 0then go long if below go short. Infact a entire indicator was developed called Squeeze indicator. I have found it quite useful The indicator combines the above. Red dots signify the contract is in a squeeze, green dots signify that the bollinger bands have moved outside the keltner channles and volatility is increasing. Histogram measures moves momentum. Blue bars on green dots are long signals, and red bars on green dots are short signals.

You should at least get two red dots before considering a potential squeeze. Once a dot turns blue and closes blue for one, 15 minute period (if using 15min timeframe), then go long if the histogram is blue and short if histogram is red.
Stay in the trade until momentum runs out on the histogram. This is indicated by the histograms failure to make a consecutive higher highs if long or consecutive lower lows of short.

It will always be a good idea to understand price action because normally I have seen these kind of squeeze happens on a support/resistance areas and we are looking for the breakout of the area on that particular TF. Sole purpose of the indicator is to make your charts look clean and watch the prices more closely.
I have seen on this thread that we are using a Moving average crossovers to ride the trade but again IMHO using 4 and 5 period MA's will give a lot of wipshaws, the idea behind using MA crossovers should be when a fast moving MA crosses the slow one but in this case 4 & 5 periods are pretty much the same, i reckon a 5ema over 18 ema could be better or simply focus on price.

 

[ash.paul]

Another trade which I took today on NTPC

 

[vicky_ag]

Hmm..Doc Wonder where you read that. But, just to warn you forex method fall flat in shares. I mean in forex, sharp falls are quite commonly visible, a 20 degree is a too steep a fall to follow in NF. In NF, you would find the trade running away from you by the time you initiated it on a 20 degree fall. The bulls will rule the roost and with sharekhan having u entering the trading pasword every now and then, it would be more than over.

Okay. Prasad In One Of The Forex Forum I Read One Guy Succesfully Using CrossOvers For Years. I LiKed One Point Very Much, That He Takes Trade (Short/Long) Only When Angle Of CrossOver Is Equal To Or More Than 20 Degree (Visually). Right Now It's Running Flat.

Thanks.