BollingerWorm !!!
- Thread starter columbus
- Start date
hi vidarthi,
Congratulations for those good trades.
I think you missed a small trade in last session.Have no regrets
because putting a no trade is far better than a wrong trade.
You grasped the technique ,perfectly.I hope the chart is 5 min sample
interval.Please change the TF to 3 min.A longer frame gives less opputunities
and more reward ,but a smaller TF gives more opputunies with lesser reward.
At beginning of the day it is difficult to guess a range-bound ,choppy or strong
day AHEAD,so it is a good practice to have both charts on 2 TFs 3min and 5 min.
Or have a chart and occasionally change the TF to another time period.
But below 3 min TF ,you face too many FALSE signals (whipsaws).
Hi chavanms,
In order not to miss small trades ,another BOLLINGER BAND BB(20,1) is
introduced in the ORIGINAL.Please refer to my earlier posts.
So ideal trades should follow this sequence.
BUY:
ENTRY BB(20,2)Bottom-->BB(20,1)Bottom-->MID--->BB(20,1)TOP-->BB(20,2)TOP EXIT
SELL:
ENTRY BB(20,2)TOP-->BB(20,1)TOP-->MID--->BB(20,1)bottom-->BB(20,2)bottom EXIT
ANYWAY ,it all depends on risk appetite of individual.
Since you are doing PAPER TRADES ,you can give a try.
In order not to miss small trades ,another BOLLINGER BAND BB(20,1) is
introduced in the ORIGINAL.Please refer to my earlier posts.
So ideal trades should follow this sequence.
BUY:
ENTRY BB(20,2)Bottom-->BB(20,1)Bottom-->MID--->BB(20,1)TOP-->BB(20,2)TOP EXIT
SELL:
ENTRY BB(20,2)TOP-->BB(20,1)TOP-->MID--->BB(20,1)bottom-->BB(20,2)bottom EXIT
ANYWAY ,it all depends on risk appetite of individual.
Since you are doing PAPER TRADES ,you can give a try.
BOLLINGER WORM
Since the appearence of the Chart looks like a WORM sandwiched
between Bollinger Bands ,hence the name Bollinger Worm.Basically
this is a INTRADAY technique ,as EMAs involved are 2H & 2L.
Most of the ideas are derived from Bollinger Bands.
Construction
1.Use standard Bollinger Bands ,that is,bb(s,20,2).
For thicker bands you can use bb(s,20,2.01), bb(s,20,2.02).....
2.Use ema2H and ema2L to outline the body of the worm.
3.If the body comes out of bands ,then make an ENTRY.
In case of doubt ,modify TF by 0.25min.That means if you are
presently following 3min TF ,change it to 3.25 min TF.
4.The EXIT is, if body comes out the band,of the other colour.
5.Since ONLY one colour or EMPTY candles are used ,no emotional
trades.
Hats off John Bollinger !!!!
Since the appearence of the Chart looks like a WORM sandwiched
between Bollinger Bands ,hence the name Bollinger Worm.Basically
this is a INTRADAY technique ,as EMAs involved are 2H & 2L.
Most of the ideas are derived from Bollinger Bands.
Construction
1.Use standard Bollinger Bands ,that is,bb(s,20,2).
For thicker bands you can use bb(s,20,2.01), bb(s,20,2.02).....
2.Use ema2H and ema2L to outline the body of the worm.
3.If the body comes out of bands ,then make an ENTRY.
In case of doubt ,modify TF by 0.25min.That means if you are
presently following 3min TF ,change it to 3.25 min TF.
4.The EXIT is, if body comes out the band,of the other colour.
5.Since ONLY one colour or EMPTY candles are used ,no emotional
trades.
Hats off John Bollinger !!!!
apologies for asking naive questions as i have not read the thread properly..
1. is the above post the strategy or it has been updated? if updated then pls guide me to the posts.
2. recommended tf = 2/3/5 min?
3. what is 2H and 2L ema? what is the period of ema.?
ps: i use amibroker and do not have TT..
thanks
dear vijkris,
1.Though I am not updating it ,other boarders are posting the latest charts.
The strategy remains the same ,with minor modification of introduction of
new Bollinger Band (20,1).
2. On range bound days 2min also works well.Remanded TF is either 3min or 5min.
3.2H and 2L means ema-2(high) and ema-2(low). You can use other EMAs also.
But they tend to be slow or late.They get smoothed out.
1.Though I am not updating it ,other boarders are posting the latest charts.
The strategy remains the same ,with minor modification of introduction of
new Bollinger Band (20,1).
2. On range bound days 2min also works well.Remanded TF is either 3min or 5min.
3.2H and 2L means ema-2(high) and ema-2(low). You can use other EMAs also.
But they tend to be slow or late.They get smoothed out.
