BollingerBands

[columbus]

BB(20,2) of nifty futures on time frame 3min-5min
are presented below.

Go long when Red,Green candles pierce the bottom band.
Go short when Green,Red candles pierce the top band.

Please continue with TREND if candles grazes TOP/BOTTOM
bands.

Today with RSI ,they worked out very well.

 

[Mangafreakz]

Bollinger Bands i understand after going through your and savant sir's posts , but can u please explain how are you using the RSI in deciding your Long/Short positions ?

 

[columbus]

Bollinger Bands i understand after going through your and savant sir's posts , but can u please explain how are you using the RSI in deciding your Long/Short positions ?

Please check my first post, I hope it helps, otherwise I
will revert back later on.

 

[Mangafreakz]

Thanks Columbus.
http://www.traderji.com/day-trading/27421-bollingerbands-35.html#post318288 This one solved my query , just posted in case anyone needed it also.

 

[AW10]

Columbus, if I can make a suggestion on your first post of this popular thread.
It would be great if you can address the issue of Stoploss as well in that.

BB piercing is great as contrarian signal.. but when trend develops, then this contrarian approach can kill the acct. That'w when we trader got to cut the loss or reverse the position.

In my initial day, I had many loosing trades by just going long/short asap the bar penetrates the band.

See if it makes sense.. else feel free to ignore my post..

Happy Trading

 

[columbus]

Columbus, if I can make a suggestion on your first post of this popular thread.
It would be great if you can address the issue of Stoploss as well in that.

BB piercing is great as contrarian signal.. but when trend develops, then this contrarian approach can kill the acct. That'w when we trader got to cut the loss or reverse the position.

In my initial day, I had many loosing trades by just going long/short asap the bar penetrates the band.

See if it makes sense.. else feel free to ignore my post..

Happy Trading

AW10,

Good point.Yes, earnings made in 5 days can be wiped out
in single day as the STOPLOSS is not addressed adequately.

1.One can use a standard 15 point stoploss from buy/sell.

2.Using a Higher Time frames often help.

3.Do not enter into the opposite transaction immediately.
Strong trending markets often catch you on wrong foot.

4.Please suggest any other method which will be very useful.

 

[AW10]

Columbus, the way I used to trade BB for contrarian trade was
1) Wait for 1st bar to pierce upper BB and close (this will be a green bar)
2) Next bar shd be a red bar and should reenter the BB normal zone.
These conditions were my setup.
If 2nd bar is another green or it still stays out of BB zone then there is danger in shorting

3) Enter short below the low of 2nd bar.
4) Stop - at the highest point of bar 1 or 2 above. Basically it is pivot high of the move.
Depending on the timeframe,

5) Trail stops with Pivot highs. First target is at central line i.e 20MA.

I am sure you will agree with me that trading without stops are dangerous for the wealth of trader.

Hope this helps.

Happy Trading

 

[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

Happy & Safer Trading

SavantGarde

 

[sumitro]

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

Happy & Safer Trading

SavantGarde

thanx for detail explanation SavantG

 

[columbus]

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

Happy & Safer Trading

SavantGarde

Savant,
Please mention the timeframe ,and you like to trade on
Timeframe of 5 MIN ,so shall I take tf=5.