Vanilla Bollinger Bands (2,20)

umeshmandal

Well-Known Member
#1
Trying to find the direction with BB alone. All Futures Chart were used.

BHEL Futures : After walking the Upper Band for almost 2 weeks, today it left and closed inside with a big down candle. Looks like the down move shall continue. One can Short below todays low.

ICICI Bank futures : It has breached the Lower Band in big way and also opened Down with a gap ! The Lower Band support being lost, it should continue it move in the same direction. A Shorting candidate.

SBIN : Its nowhere vis a vis BB ! Seems will continue to drift. No trade.

TATAMOTORS : On 14th July the candle was breaching the Lower band with High Low of 404.45 and 382.55 ! Ever since this range of the stock has not been breached. It has sort of made an IDNR 8 sort of formation on the Lower Band. Expect a breakout in either direction.

WIPRO: Almost similar to BHEL ! Yesterdays Candle on BB top indicated a continued upmove but todays down move must have surprised the market.
Wipro has moved from BB top to make a BIG down candle inside the upper half of the BB ! Looks like a viable shorting candidate.
 

umeshmandal

Well-Known Member
#2
Follow up in Bold/Colour for Trades on 27th July 2015 :

Trying to find the direction with BB alone. All Futures Chart were used.

BHEL Futures : After walking the Upper Band for almost 2 weeks, today it left and closed inside with a big down candle. Looks like the down move shall continue. One can Short below todays low.
It was a gem of a trade. Bhel previous low was ~281 and did a low of ~271 today.

ICICI Bank futures : It has breached the Lower Band in big way and also opened Down with a gap ! The Lower Band support being lost, it should continue it move in the same direction. A Shorting candidate.

Short in ICICI Bank also did excellent.

SBIN : Its nowhere vis a vis BB ! Seems will continue to drift. No trade.
Did not trade

TATAMOTORS : On 14th July the candle was breaching the Lower band with High Low of 404.45 and 382.55 ! Ever since this range of the stock has not been breached. It has sort of made an IDNR 8 sort of formation on the Lower Band. Expect a breakout in either direction.
Moved South, good short trade.

WIPRO: Almost similar to BHEL ! Yesterdays Candle on BB top indicated a continued upmove but todays down move must have surprised the market.
Wipro has moved from BB top to make a BIG down candle inside the upper half of the BB ! Looks like a viable shorting candidate.
Down move in Wipro wasnt significant but surely profitable.
 

umeshmandal

Well-Known Member
#3
For 28th July : No Buy call as expected with market tanking almost 150 Nifty Points.

Bank Nifty Standing on the Bottom Band ready to jump down. Short below todays low.

Yes Bank , pushing the Lower Band down, Short


Voltas : It was a Sell even today, but may continue its direction with price closing below lower Bollinger Band


PTC : Closed below Lower Bollinger Band, Short

NTPC seems to have closed 52 weeks low or maybe at all time low and also below the BB lower band.

JSW Steel : Same as NTPC at 52 weeks low and closed below the lower band.

Idea : Closed below the lower band with a huge down bar. Short

All these as per my understanding of the BB ! These arent calls to trade.
 

umeshmandal

Well-Known Member
#5
Ashok Leyland has indeed left the BB Top after walking n it for almost 10 days, rather barely left it and with mkt poised to go lower, this can be a valid short. :thumb:

However my only reservation is that todays candle has higher Close than Open! Todays volume is more than yesterdays volume when it was a down close candle!
A negative candle would have given more confidence in taking a short trade.
 
#6
However my only reservation is that todays candle has higher Close than Open! Todays volume is more than yesterdays volume when it was a down close candle!
A negative candle would have given more confidence in taking a short trade.
Indeed, looks like an engulfing bull.
 

rkkarnani

Well-Known Member
#7
Follow up on 28th July trades, all written in Bold and coloured.

For 28th July :

Bank Nifty Standing on the Bottom Band ready to jump down. Short below todays low.

Short may or may not have been triggered. But if it was, it resulted in a Loss!

Yes Bank , pushing the Lower Band down, Short
Short not triggered.

Voltas : It was a Sell even today, but may continue its direction with price closing below lower Bollinger Band
Gave opportunity of ~1% but ended in loss if profit not booked.

PTC : Closed below Lower Bollinger Band, Short
Would not trigger even if a small filter of 50 p is used, otherwise this also ended in loss

NTPC seems to have closed 52 weeks low or maybe at all time low and also below the BB lower band.

Turned out to be a losing SHORT trade.

JSW Steel : Same as NTPC at 52 weeks low and closed below the lower band.
Gave opportunity for 1%

Idea : Closed below the lower band with a huge down bar. Short
Was an excellent Short trade.
All these as per my understanding of the BB ! These arent calls to trade.
Over all a bad day of trade that I would like to put behind me asap! :eek: :p :( :)
 
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umeshmandal

Well-Known Member
#8
Follow up on 28th July trades, all written in Bold and coloured.



Over all a bad day of trade that I would like to put behind me asap! :eek: :p :( :)
Thank you for updating todays trades rkk sir ! I am trying to include the suggestions you gave and shall filter the Stocks accordingly for tomorrow!

Do you have any scanner for metastock to do the same?

I took all the trades, small qty. in cash and would have held on had the trades been Long! As all were short trades I had to exit before close. :eek:
 

umeshmandal

Well-Known Member
#9
Trades one can take based on BB for 29th July. Remember tomorrow is Derivative Closing.

Sun TV : Breached the Upper Band day before, closed inside. Yesterday on 28th made a BIG down bar, likely the down thurst to continue. SELL

IOC: After travelling along the Upper BB for a fortnight or so, IOC had made two Doji candles both closing in the bottom one third range indicating Seeling pressure at higher level. And on 28th, yesterday made a big down candle. Looks a good SELL !

Hind Zinc : Breached lower band BIG, just entering the oversold zone. Can still have some momentum left to continue the down move. SELL

Century Textile : It gave a Sell as per some other strategy on 27th below 700/- and already did a low of 650/- on 28th, yesterday! Now candle closing below th lower BB, expect it to continue South. SELL

Titan : Seems to recover. No signal as per BB.

PNB: Reversing from BB bottom: A cautious Long.

Jubilant Food : Made big upmove from BB Bottom band. BUY
 

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