http://www.traderji.com/day-trading/27421-bollingerbands-2.html#post369156
Bollinger bands are actually indicators as to the volatility of a particular security. As a result, for trading purposes, one would want to look at the activity of trading within the bands in conjunction with another tool, such as the Relative Strength Indicator, to properly undertake investment decisions.
Historically, when a price movement has been identified originating at one of the Bollinger limits, it will more likely than not continue at least to the opposite limit band.
Bollinger bands are in essence a graphic representation of the volatility that exists in the market for any particular stock. As such, they allow the investor the possibility to identify periods where opportunities for the undertaking of successful positions can arise.
When used in conjunction with other indicators, the knowledge and use of Bollinger bands can greatly improve any individuals trading performance.
Bollinger Bands and Trading
Bollinger bands is without a doubt one of the greatest tools ever created to aid the astute trader with his entries and exits.
The reaction of an upper or lower band to approaching price provides the active trader with a tale tale sign of what will likely take place over the next few bars or more.
This reaction provides valuable insight into whether or not this will be just a few bars or quite a few bars.
Likewise the upper bands "personality" during this time is also very telling.
BB with RSI:
http://www.traderji.com/day-trading/27421-bollingerbands-44.html#post294262
On a choppy day ,with RSI ,it works very well,
http://www.traderji.com/day-trading/27421-bollingerbands-20.html#post318275
BB trading:
http://www.traderji.com/day-trading/27421-bollingerbands-34.html#post299842
BB with RSI+Stochastics
http://www.traderji.com/day-trading/27421-bollingerbands.html#post431390
Bollinger Bands is rather under-rated indicator.
Trading with BB is rather simple.If if hits the top band then SHORT it.
If it hits the bottom band BUY it.If it grazes the bands go in the same
direction.
http://www.traderji.com/day-trading/27421-bollingerbands-54.html#post291356
EMA crossover method has been used extensively for Long Term
view.But it can be used in conjunction with Bollinger Bands for
day trading also.
http://www.traderji.com/day-trading/27421-bollingerbands.html#post422465
The positions of Candles with respect to Central line is crucial.
If the candles are below the central line near the bottom band
SHORT it.For LONG entry the conditions are just reverse.
Inputs by
SavantGarde:
Rules For Going Long Or Short Is As Follows:
LONG ENTRY, EXIT & S/L:
Entry On Immediate Completion Of Green Candle After A Lower BB Piercing Candle.
Exit- I: Immediately On Upper BB Piercing
Exit-II: On Completion Of Two Consecutive Red Candle.
S/L: Completion Of Two Consecutive Red Candle
S/L Immediately After Entry: Low Of BB Piercing Candle
SHORT ENTRY, EXIT & S/L:
Entry On Immediate Completion Of Red Candle After Upper BB Candle Piercing Candle.
EXIT-I: Immediately On Lower BB Piercing
EXIT-II: On Completion Of Two Consecutive Green Candle
S/L: Completion Of Two Consecutive Green Candle.
S/L Immediately After Entry: High Of BB Piercing Candle
. The trend remains up but the vix is going down while the BB are widening slightly (Range : 5416-5053, Width : 363).
