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 !!!
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 !!!
Last edited: