BollingerWorm !!!
- Thread starter columbus
- Start date
1.Use standard Bollinger Bands ,that is, bb(s,20,2).
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
2.Use ema2-HIGH and ema2-LOW to outline the body of the worm.
3.If the body comes out of bands & re-enters ,then make an ENTRY.
4.The EXIT is, if body comes out the band,of the other band and re-enters the body.
5.In case of extreme Bullishness/extreme Bearishness another
pair is used pertaining to BB(20,1) or just for guidence in normal case also.
Hi Coloumbus ,
Same is for me , trying to undrestand & learn from your thread from last 2 months & eager to learn more from U. Pls help me to know why u exited at 12:00 & 13:00 hours at that time worm didn't touch upper band . As per my understanding short from upper band & long from lower band.
sorry if asking something silly.
Same is for me , trying to undrestand & learn from your thread from last 2 months & eager to learn more from U. Pls help me to know why u exited at 12:00 & 13:00 hours at that time worm didn't touch upper band . As per my understanding short from upper band & long from lower band.
sorry if asking something silly.
Last edited:
Hi Nazim,
We discussed about targets here:
http://www.traderji.com/day-trading/48558-bollingerworm-2.html#post553512
Apart from Bands ,SMA-20 (Simple Moving Average 20) is a crucial zone.
Any reversal above it ,may be on the zone itself or the bands need some
action.If you are getting Band to Band target ,then you are LUCKY.
We discussed about targets here:
http://www.traderji.com/day-trading/48558-bollingerworm-2.html#post553512
Apart from Bands ,SMA-20 (Simple Moving Average 20) is a crucial zone.
Any reversal above it ,may be on the zone itself or the bands need some
action.If you are getting Band to Band target ,then you are LUCKY.
Columbus,
How do we book profits at intermediate targets as lower(BB201), SMA20 etc.? I mean to say what triggers theses buy/sell actions? Is it the worm body piercing up/down any of these levels and coming down/up and piercing in the opposite directions? Isn't there a good chance that it might be a passing trend and we lose out on a big move because we lose our positions? Does it have to do something with the sizing of the trades?
Thanks for all the inputs.
How do we book profits at intermediate targets as lower(BB201), SMA20 etc.? I mean to say what triggers theses buy/sell actions? Is it the worm body piercing up/down any of these levels and coming down/up and piercing in the opposite directions? Isn't there a good chance that it might be a passing trend and we lose out on a big move because we lose our positions? Does it have to do something with the sizing of the trades?
Thanks for all the inputs.
Crusader, I think that Columbus said to book part profits at each line crossover. Somewhere in this thread you will find a post which spells out 25%, 50% and 75% and 100% levels. In case of a buy (i.e. lower BB(20,2) pierced), the levels are 25% = lower BB(20,1) pierced, 50% = EMA20 pierced, 75%=upper BB(20,1) pierced, 100% = upper BB(20,2) pierced. The reverse for sell.
Thanks TP. What if we have a failed case as in yesterday? As in we reach profit booking at 75% and the worm takes an about turn. Then we still have 25% with us.. We ride with it or let the SL take care of it? SL will be way below, though as we are sitting @ top of BB(20,1). What should we do in this case?