3D-Bollinger Band

[columbus]

NIFTY-21.11.14

 

[columbus]

Nifty 28.11.14

First GAP UP candle is removed.

 

[VISHNU G]

Virtual Trading with NSE pathasala will help to get an idea of real time trading before entering to original tradings

 

[VISHNU G]

http://s3.postimg.org/wfogct56b/TRADE_21214.jpg Simple Chart using BB & Stoch.

http://s11.postimg.org/6j54lj24z/TRADE_DATA.jpg My trade data

Attn. Columbus Sir,

I have created something like your chart for intraday trading simply using. Bolinger bands and Stochastic. The basic theory is just enter the trades when both BB and Stoch show the signals together.

By using this strategy I have traded today with NSE Pathasala virtual money and earned about 7000 after multiple trading with a capital of 65000/-. Apart from my 6 tradings only one hit SL.

I used 15 minutes chart as basic chart and traded with 3 minutes one. Hope this virtual trading will help me.

Thank you very much for showing me the power of Bolinger Bands.

Hats off to you.

Warm Regards,
Vishnu.

 

[hmp]

Dear Vishnu ji.
Your stochastics setting is (s,3,5 close.what it means? period 3 or 5?.what is the K & D setting?pl elaborate.Thanks to you & columbus sir for nice set up.

 

[VISHNU G]

Dear Vishnu ji.
Your stochastics setting is (s,3,5 close.what it means? period 3 or 5?.what is the K & D setting?pl elaborate.Thanks to you & columbus sir for nice set up.

Thanks for the query. I will give you a brief very soon. After Trading hours.

Warm Regards

 

[naveen3562003]

Calling it as 3D-Bollinger Band is a bit misnomer, because it does not belong to a particular Average and Standard Deviation as in the case of 2D-Bollinger Band.But it contains a series of 2D Bollinger Bands with different Averages and Standard Deviations and they are arranged in such a way to give a 3D impression.Most of the ideas are taken from 2D-Bollinger Band.


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 is used for Entry/Exit and 5 min is used for getting overall trend.

But sometimes it so happenes that after taking a BUY at Lower band ,it moves in UP direction for some time but suddenly it drifts down.In such case Guide lines will help.Now we are forced to take another month future or option of another strike so that it will not cancel with other existing future/option.At the end of the trend, square off the latest future/option and take another lot of old future/option.This is a better AVERAGING.Now the Million Dollar question.How to identify the end of a trend?If the candles are sandwitched between bands and guidelines (either LOWER or UPPER as the case may be) then RIDE the trend.The Guide lines start appearing prominently and move away from CANDLES,then it indicates a Reversal.

I discussed about BASIC 3D-Bollinger Band and many TWEAKS are possible by sacrificing outer Bollinger Bands.It is based on RISK appetite of the Individual.

Please bear in mind that on EOD chart, everything is known, PAST,PRESENT and FUTURE.But on a LIVE chart we have to derive the FUTURE based on PAST and PRESENT .So it is a bit difficult.
Nevertheless we have to strive hard to reach our target.


Hats off to John Bollinger ,once again !!!

Nice info and thanks for the efforts......can I ask you one thing where can i get this 3d chart ? I mean which terminal supports it? if its a amibroker please share the AFL....

TIA...

 

[VISHNU G]

Dear Vishnu ji.
Your stochastics setting is (s,3,5 close.what it means? period 3 or 5?.what is the K & D setting?pl elaborate.Thanks to you & columbus sir for nice set up.

Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator “doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first, and most important, signal that Lane identified. Lane also used this oscillator to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels.

The default setting for the Stochastic Oscillator is 14 periods (Where as I have used it 5) periods, which can be days, weeks, months or an intraday timeframe. A 14-period %K would use the most recent close, the highest high over the last 14 periods and the lowest low over the last 14 periods. %D is a 3-day simple moving average of %K. This line is plotted alongside %K to act as a signal or trigger line.

The Stochastic Oscillator measures the level of the close relative to the high-low range over a given period of time. Assume that the highest high equals 110, the lowest low equals 100 and the close equals 108. The high-low range is 10, which is the denominator in the %K formula. The close less the lowest low equals 8, which is the numerator. 8 divided by 10 equals .80 or 80%. Multiply this number by 100 to find %K %K would equal 30 if the close was at 103 (.30 x 100). The Stochastic Oscillator is above 50 when the close is in the upper half of the range and below 50 when the close is in the lower half. Low readings (below 20) indicate that price is near its low for the given time period. High readings (above 80) indicate that price is near its high for the given time period. The IBM example above shows three 14-day ranges (yellow areas) with the closing price at the end of the period (red dotted) line. The Stochastic Oscillator equals 91 when the close was at the top of the range. The Stochastic Oscillator equals 15 when the close was near the bottom of the range. The close equals 57 when the close was in the middle of the range.

Hope you got an Idea about Stochiastic .

Regards

 

[hmp]

Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. According to an interview with Lane, the Stochastic Oscillator “doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.” As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals. This was the first, and most important, signal that Lane identified. Lane also used this oscillator to identify bull and bear set-ups to anticipate a future reversal. Because the Stochastic Oscillator is range bound, is also useful for identifying overbought and oversold levels.

The default setting for the Stochastic Oscillator is 14 periods (Where as I have used it 5) periods, which can be days, weeks, months or an intraday timeframe. A 14-period %K would use the most recent close, the highest high over the last 14 periods and the lowest low over the last 14 periods. %D is a 3-day simple moving average of %K. This line is plotted alongside %K to act as a signal or trigger line.

The Stochastic Oscillator measures the level of the close relative to the high-low range over a given period of time. Assume that the highest high equals 110, the lowest low equals 100 and the close equals 108. The high-low range is 10, which is the denominator in the %K formula. The close less the lowest low equals 8, which is the numerator. 8 divided by 10 equals .80 or 80%. Multiply this number by 100 to find %K %K would equal 30 if the close was at 103 (.30 x 100). The Stochastic Oscillator is above 50 when the close is in the upper half of the range and below 50 when the close is in the lower half. Low readings (below 20) indicate that price is near its low for the given time period. High readings (above 80) indicate that price is near its high for the given time period. The IBM example above shows three 14-day ranges (yellow areas) with the closing price at the end of the period (red dotted) line. The Stochastic Oscillator equals 91 when the close was at the top of the range. The Stochastic Oscillator equals 15 when the close was near the bottom of the range. The close equals 57 when the close was in the middle of the range.

Hope you got an Idea about Stochastic .

Regards

Thanks Vishnu ji for the information.
In fact rather i was looking for set up in trade tiger.I found that after plotting 3d band set up i cant add more study. I got the message like that.I would like to know how you have plotted stochastic below 3 d band in the same interface or rather how you have potted 3 d band & stochastic simultaneously?
Regards

 

[VISHNU G]

Thanks Vishnu ji for the information.
In fact rather i was looking for set up in trade tiger.I found that after plotting 3d band set up i cant add more study. I got the message like that.I would like to know how you have plotted stochastic below 3 d band in the same interface or rather how you have potted 3 d band & stochastic simultaneously?
Regards

Ok, In trade tiger, you can add 8 instruments. Not more than that. You can see that I have put 6 BBs for making it a 3D effect and one for making a worm and the 8th is the stoch.

Regards