BollingerBands

Did Bollinger Bands help you?

  • Yes

    Votes: 239 77.9%
  • No

    Votes: 68 22.1%

  • Total voters
    307

columbus

Well-Known Member
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 ?
Ankit3066,

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.
 
Ankit3066,

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.

Thanks for the reply sir .!!

But i didn't understand Sma/ema point ? Do i need to add one more indicator in the chart ? And what will be the parameters ( I'm using trade tiger ).
 
Sir i am watching nifty future on 5 min tf. I have a confusion. In your previous posts you have said that one should avoid trading when bands are narrow.

what i marked in today's chart is if we continue with previous data bands appear to be narrow , whereas if we look at current chart , we find a short signal.

So , i am confused how to make decision ? :confused: Should i not trade , as the bands are narrow , or should i go ahead and follow the piercing rules.

Plz guide.



 
Last edited:

columbus

Well-Known Member
Sir i am watching nifty future on 5 min tf. I have a confusion. In your previous posts you have said that one should avoid trading when bands are narrow.

what i marked in today's chart is if we continue with previous data bands appear to be narrow , whereas if we look at current chart , we find a short signal.

So , i am confused how to make decision ? :confused: Should i not trade , as the bands are narrow , or should i go ahead and follow the piercing rules.

Plz guide.
Bands are NARROW means NO trading interest or market is FLAT.
In that case ,choose a small TF either 2 min or 3 min, because 5 min TF is of no USE.
With 5 min ,do not trade in that case.

In your chart on 5 min TF ,Candles came to middle line,on 3 min TF certainly they
would have come to LOWER band.Right now ,I do not have TradeTiger with me,
see for yourself.

Always have charts on 2 different TFs ,3min and 5 min etc..

Moving average overlay is simple.Have 2 different moving averages ,say SMA2 and
another say SMA8.SMA2 gives roughly the CURRENT position,but SMA8 gives the
Trend.As long as SMA2 is above SMA8 BULLISH trend ,and if SMA2 is below SMA8
then BEARISH Trend.
 
GE Columbus sir,

I read throw out & very much impress , its really good work.i need your help for chart setup.

I am using Metastock 11 for intrday trading in 5 minuts chart.

I am mostly trade in crude oil in mcx.

Can you suggest me which time frame use for bollinger bands , ema & indicator.

Please help me if possible.waiting for your replay.

Thanks
 
Good Evening Columbus Sir
Thanks for all the nice threads & valuable methods..I have learnt a lot from all the threads by you on BB.I am trying to implement them in trading.But I dont know WHY? every time i fails..if you please solve my problem & show me a path..as You are very well versed with this indicator..
Give you example..I took only this thread method, to reduce confusion..I have paper traded it in month of november..though I am in profit, but my results are not very good..I Want to improve it.
I have included stochostic with it.
ENTRY- long entry when red-green candel pattern happen on lower band & stoch is oversold..
short entry when green red candel pattern happen on higher band & stoch is overbought..
exit on opposite band..I dont know excatly what I am missing..?
but I observed main thing..If we use it objectively as mentioned above..we cant take profit on trend days..so main problem is if we can distinguish between range days & trend days..we can improve my results..so if you please can put some light on it..
I am posting a chart for example..

When market is in trend..those setups fail continuouslly..so how we distinguish that market starts trending & then we trade only in direction of trend..
Thanks
 
Last edited:
Hi Columbus Sir
I have another query..as you always mention, we should see 2 different time period 3 in & 5min..It means we should take entry & exit only if they happpen simultaneously on 3 &5 min together..
Example, if price touches lower band on 5 min, so we should check 3 min same time & see. if it touches there also..if it doesnt touch lower band of 3 min ,we ahould not take entries..
it means, both time frame should show same entry / exit , then only can take entries/exit..if both are not on same bands, we should avoid those entries/ exits..

Besides , I have so many queries..

Please bear with me, as I am very much intrested in this indicator & I trust it will help me very much in my trading..
Thanks
 

columbus

Well-Known Member
GE Columbus,

I read throw out & very much impress , its really good work.i need your help for chart setup.

I am using Metastock 11 for intrday trading in 5 minuts chart.

I am mostly trade in crude oil in mcx.

Can you suggest me which time frame use for bollinger bands , ema & indicator.

Please help me if possible.waiting for your replay.

Thanks
GE light2001,

I never traded COMMODITIES.

As far as NIFTY is concerned, I use 3 min for Choppy markets and 5 min for Strong
markets.(Duration:375 min). Since Commodities trade longer than normal NIFTY,
may be 10 min and 15 min is recommended ?????????????????
 

columbus

Well-Known Member
Good Evening Columbus Sir
Thanks for all the nice threads & valuable methods..I have learnt a lot from all the threads by you on BB.I am trying to implement them in trading.But I dont know WHY? every time i fails..if you please solve my problem & show me a path..as You are very well versed with this indicator..
Give you example..I took only this thread method, to reduce confusion..I have paper traded it in month of november..though I am in profit, but my results are not very good..I Want to improve it.
I have included stochostic with it.
ENTRY- long entry when red-green candel pattern happen on lower band & stoch is oversold..
short entry when green red candel pattern happen on higher band & stoch is overbought..
exit on opposite band..I dont know excatly what I am missing..?
but I observed main thing..If we use it objectively as mentioned above..we cant take profit on trend days..so main problem is if we can distinguish between range days & trend days..we can improve my results..so if you please can put some light on it..
I am posting a chart for example..
Thanks
Hi niftytaurus,



The problem with many (including me,initially) is that ,once a position is initiated ,
we want to see it ,to hit other BAND.We tend to ignore some signals.

"A" on Stochastic chart corresponds to TOP band of BB, so square off entire position ,
if already a BUY position is there.Initiate a SELL position.

"B" on Stochastic chart is telling ,to stop SELL position and initiate a BUY position.

"C" on Stochastic chart is telling to stop BUY position and initiate a SELL position.

Since you are doing PAPER TRADING where greed/fear has no role, you can initiate
a SELL position at "D" also.

If it hits LOWER band with RED+GREEN pair ,then square off entire quanity

Since Bands are NARROW and difference between them is comparable to the Candles
I am given to understand that most probably this is a chart of 1Min time frame.

The problem with such a low Time frame is 1.Too many trades 2.The chances of going
Wrong (Whipsaws).

Moreover ,I observed that in Strong Markets ,I was booking profits early.
To solve the problem ,I have developed another strategy ,3D-bollinger bands,
where it contains ,not ONE ,but a series of Bands with varying SMAs and SDs.

In highly bullish/bearish markets please give some relaxation to the rules.
 
Good Evening Columbus Sir
Thanks for all the nice threads & valuable methods..I have learnt a lot from all the threads by you on BB.I am trying to implement them in trading.But I dont know WHY? every time i fails..if you please solve my problem & show me a path..as You are very well versed with this indicator..
Give you example..I took only this thread method, to reduce confusion..I have paper traded it in month of november..though I am in profit, but my results are not very good..I Want to improve it.
I have included stochostic with it.
ENTRY- long entry when red-green candel pattern happen on lower band & stoch is oversold..
short entry when green red candel pattern happen on higher band & stoch is overbought..
exit on opposite band..I dont know excatly what I am missing..?
but I observed main thing..If we use it objectively as mentioned above..we cant take profit on trend days..so main problem is if we can distinguish between range days & trend days..we can improve my results..so if you please can put some light on it..
I am posting a chart for example..

When market is in trend..those setups fail continuouslly..so how we distinguish that market starts trending & then we trade only in direction of trend..
Thanks


Hello niftytauras , even i was facing the same problem some time back in my paper trades. I would take short position just after Green+Red piercing , but if the candles still go up it would hit SL . But now a days what i do is , i wait for the prices to come down and enter at "LOW" of piercing green candle , this is working most of the time for me and is reducing chances of failure.

If price dosen't reach the low of piercing candle and still go up and are concentrated on the upper band indicating bullishness , i go long.


I got to know this from columbus sir's and timepass sir's reply as i had addressed a similar query in previous posts.

You can take a look here

http://www.traderji.com/day-trading/27421-bollingerbands-236.html#post1026994


http://www.traderji.com/day-trading/27421-bollingerbands-236.html#post1027010
 
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