Columbus , i have a query. Why is it advisable to trade when fresh bands start to appear and not trade with continuation of previous data ?
In case of 3min TF , bands start at 10.15am . What i marked is if we get good moves in any direction till 10.15 , we wont be able to take an advantage.
Is there a way to catch initial moves ? Or should we strictly follow the fresh bands ?
In case of 3min TF , bands start at 10.15am . What i marked is if we get good moves in any direction till 10.15 , we wont be able to take an advantage.
Is there a way to catch initial moves ? Or should we strictly follow the fresh bands ?
http://www.traderji.com/day-trading/27421-bollingerbands-6.html#post1013152
Methods based on BB : When there is NO big gap UP/DOWN ,there is no harm in borrowing previous samples.
In chart shown by you ,15~20 points gap down is shown.
Say if the gap is very large ,may 40~50 points ,then in calculation of bands previous last
20 candles is taken ,then the bands look a bit ,WRONG.
To capture initial moves you can use Simple Overlays. That is one long SMA/EMA versus
short SMA/EMA.The trend is in direction of LONG SMA/EMA.