BollingerBands

[ankit3066]

Sir i was just looking at this chart. If we observe the 5 min chart, at 1200 hrs we have a piercing at lower band followed by a small green candle.

In this case we have to go long , but we can see "grazing"with the lower band and down move continues.

My question is we can spot this in EOD charts , but how to tackle the situation during LIVE MARKET ?? A beginner like me will try to go long but the trade will go in opposite direction.

Also, does Bollinger worm tackles this situation in any way , coz i am still to read that thread .

 

[timepass]

Sir i was just looking at this chart. If we observe the 5 min chart, at 1200 hrs we have a piercing at lower band followed by a small green candle.

In this case we have to go long , but we can see "grazing"with the lower band and down move continues.

My question is we can spot this in EOD charts , but how to tackle the situation during LIVE MARKET ?? A beginner like me will try to go long but the trade will go in opposite direction.

My view. That green candle is an inside bar, so if you want to go long, wait for it to clear the previous red bar and close above.

 

[Pradeep Narayan]

My way of trading... I do EOD analysis with BB70,1 and EMA 21 crossover. In case I see EMA piercing the BB from TOP (at Top Band), I would plan for going short at every day till 8-10% of price target is achieved. Reverse logic when EMA approaches from BB Bottom.

That done, I would use a dual BB (BB20,2 and BB20,3) for entry and exits during day. The outer bands will be your SL points.

 

[ankit3066]

My view. That green candle is an inside bar, so if you want to go long, wait for it to clear the previous red bar and close above.

Thanks sir.

This means 1) If we plan to go long, we need to wait for the green candle to close "above" the red piercing candle.....and in case of short we need to wait for the red candle to close "below" the green piercing candle.

And 2)If green candles grazes the upper band , it indicated bullishness and when red candles grazes lower band it indicates bearishness.

Did i interpret both 1&2 correctly ?

 

[columbus]

Thanks sir.

This means 1) If we plan to go long, we need to wait for the green candle to close "above" the red piercing candle.....and in case of short we need to wait for the red candle to close "below" the green piercing candle.

And 2)If green candles grazes the upper band , it indicated bullishness and when red candles grazes lower band it indicates bearishness.

Did i interpret both 1&2 correctly ?

Now a days , I am doing AVERAGING ,twice or thrice with not lesser than 30 min.But keep
in mind to square off your positions before the closure of the market.Averaging TWICE or
THRICE is OK,but beyond that you will take more risk than reward.

Going by that you can take average lot at 12.30 and 13.00 and liquidate all positions
at around 13.30.

 

[timepass]

Thanks sir.

This means 1) If we plan to go long, we need to wait for the green candle to close "above" the red piercing candle.....and in case of short we need to wait for the red candle to close "below" the green piercing candle.

Right.

And 2)If green candles grazes the upper band , it indicated bullishness and when red candles grazes lower band it indicates bearishness.

It indicates continued bullishness or bearishness, assuming that the trader is long/short since the midline (SMA20) was pierced in the direction.

Now a days , I am doing AVERAGING ,twice or thrice with not lesser than 30 min.But keep
in mind to square off your positions before the closure of the market.Averaging TWICE or
THRICE is OK,but beyond that you will take more risk than reward.

Going by that you can take average lot at 12.30 and 13.00 and liquidate all positions
at around 13.30.

On 3 min TF ?

 

[timepass]

My way of trading... I do EOD analysis with BB70,1 and EMA 21 crossover. In case I see EMA piercing the BB from TOP (at Top Band), I would plan for going short at every day till 8-10% of price target is achieved. Reverse logic when EMA approaches from BB Bottom.

That done, I would use a dual BB (BB20,2 and BB20,3) for entry and exits during day. The outer bands will be your SL points.

This is something new. Will check it out tomorrow. Good exercise for a trading holiday. Hope you will address any queries in this regard.

 

[Pradeep Narayan]

This is something new. Will check it out tomorrow. Good exercise for a trading holiday. Hope you will address any queries in this regard.

Try it out... it works like charm for swing trading too (you would not need the BB20,2 and BB20,3 for swing trading). Bollinger Band is simply amazing!!

 

[timepass]

My way of trading... I do EOD analysis with BB70,1 and EMA 21 crossover. In case I see EMA piercing the BB from TOP (at Top Band), I would plan for going short at every day till 8-10% of price target is achieved. Reverse logic when EMA approaches from BB Bottom.

That done, I would use a dual BB (BB20,2 and BB20,3) for entry and exits during day. The outer bands will be your SL points.

Try it out... it works like charm for swing trading too (you would not need the BB20,2 and BB20,3 for swing trading). Bollinger Band is simply amazing!!

I get that BB(70,1) is on daily TF, but what is the timeframe for the dual BB(20,2) and BB(20,3) ??

 

[columbus]

On 3 min TF ?

On lower time frames 3min and below ,you can try.On higher time frames ,a big NO.
May work on few occasions.