3D-Bollinger Band

[columbus]

Not able to understand pls repost with buy sell marking

Hi nazimrushda,

Generally I do not carry positions.I am a pure Day Trader.
But many times Carrying positions will fetch a lot.From next
week onwards I want to do day trading only.In future I will
desist giving my comments below the chart ,because it is
creating some confusion.

 

[columbus]

Basically it contains 7 Bollinger Bands[From BB(21,2.1),BB(22,2.2),
BB(23,2.3),BB(24,2.4),BB(25,2.5),BB(26,2.6) & BB(27,2.7)] and
Guide lines in form of BB(21,0.7) as indicated in the chart.By
choosing 0.7 Standard Deviation, it will divide the Total BB into
3 zones, namely TOP (bullish),MIDDLE (neutral) and BOTTOM (bearish)
zones.

Rules are same as 2D Bollinger Band.BUY at lower Band and SELL
at top Band.Any Time Frame from 3min to 5min can be used.
3min/4min is used for Entry/Exit and 5 min is used for getting overall trend.

 

[columbus]

Basically it contains 7 Bollinger Bands[From BB(21,2.1),BB(22,2.2),
BB(23,2.3),BB(24,2.4),BB(25,2.5),BB(26,2.6) & BB(27,2.7)] and
Guide lines in form of BB(21,0.7) as indicated in the chart.By
choosing 0.7 Standard Deviation, it will divide the Total BB into
3 zones, namely TOP (bullish),MIDDLE (neutral) and BOTTOM (bearish)
zones.

Rules are same as 2D Bollinger Band.BUY at lower Band and SELL
at top Band.Any Time Frame from 3min to 5min can be used.
3min/4min is used for Entry/Exit and 5 min is used for getting overall trend.

 

[internet_fanbboy]

Rules are same as 2D Bollinger Band.BUY at lower Band and SELL
at top Band.

What if market keeps on making newer lows or high over a given period of time. What would you suggest as a SL ? Or Can one average the position if it keeps making new lows.

 

[columbus]

What if market keeps on making newer lows or high over a given period of time. What would you suggest as a SL ? Or Can one average the position if it keeps making new lows.

Hi internet_fanboy,

If you are able to average comfortably it means you are catching a falling knife.
I will average only once or twice (max) keeping in view that market will retrace 50%
gain/loss.This happens only if sufficient time is left.At 2.30 or 3.00 ,I do not try to average.
Better get out.

 

[internet_fanbboy]

Hi internet_fanboy,

If you are able to average comfortably it means you are catching a falling knife.
I will average only once or twice (max) keeping in view that market will retrace 50%
gain/loss.This happens only if sufficient time is left.At 2.30 or 3.00 ,I do not try to average.
Better get out.

This is essentially a counter-trend trade that we are getting into. I used to trade something similar (GreaterFoolsZone) it worked pretty well 80% of the times but the other 20% were painful losses. I am curious about how do you go about trading this ? You take fixed profits/losses ? Or P/L is subjective according to the market conditions.

Is there a particular market condition that you feel this works really well in ?

 

[columbus]

This is essentially a counter-trend trade that we are getting into. I used to trade something similar (GreaterFoolsZone) it worked pretty well 80% of the times but the other 20% were painful losses. I am curious about how do you go about trading this ? You take fixed profits/losses ? Or P/L is subjective according to the market conditions.

Is there a particular market condition that you feel this works really well in ?

Yes, In case of V-type recovery or INVERTED V-type, this works very well.
But one condition is, GOOD amount of time is left for closure of market.To
be frank,we need to study the strategy for few more days.It should work
for all types of markets(Bullish/Bearish/Choppy).

 

[angira]

Columbus,
I've tried this setup with infosys & Nifty.
Infosys trade have done nicely.
in GCI nifty spread is too high so SL hit.
but it require practise for me to determine first trend from 5min. chart.

angira...

 

[columbus]

Basically it contains 5 Bollinger Bands[From BB(21,2.1),BB(22,2.2),
BB(23,2.3),BB(24,2.4), & BB(25,2.5)EMA-2high,EMA-2low and
Guide lines in form of BB(21,0.7) as indicated in the chart.By
choosing 0.7 Standard Deviation, it will divide the Total BB into
3 zones, namely TOP (bullish),MIDDLE (neutral) and BOTTOM (bearish)
zones.

Rules are same as 2D Bollinger Band.BUY at lower Band and SELL
at top Band.Any Time Frame from 3min to 5min can be used.
3min/4min is used for Entry/Exit and 5 min is used for getting overall trend.

 

[columbus]

Columbus,
I've tried this setup with infosys & Nifty.
Infosys trade have done nicely.
in GCI nifty spread is too high so SL hit.
but it require practise for me to determine first trend from 5min. chart.

angira...

angira,

Good to know the system is working fine.
To be frank with you,it is not the system but the control over
GREED & FEAR that makes a trader a successful trader.
Unfortunately sometimes trader has to be greedy sometimes (not always).
I will illustrate with an example. Yesterday,I was SHORT on nifty (or PE options).
But I closed my positions rather early as I got a signal to square off.
(Candle closing on lower band).Had I waited for some more time the same
options would have fetched me more.No regrets.