Spider Software

[Spider Software]

Band Bollinger​

Band Bollinger is powerful Technical Indicator developed by John Bollinger in 1980s. The essence of Band Bollinger is based on a moving average that defines the trend of the stock. Band Bollinger also provides relative boundaries of HIGHS & LOWS also called as "Bands" that can be used in rigorous trading approaches, pattern recognition & much more.

The center line is an exponential moving average; the price channels (Green & Red line) are the standard deviations of the stock being studied. The bands will expand and contract as the price action of an issue becomes volatile or becomes bound into a tight trading pattern.

Band Bollinger Calculation:

Middle band (line) = 20 days Simple moving average.

Upper Band = 20 days SMA + 20-day Standard deviation of price x 2.

Lower Band = 20 days SMA - (20-day Standard deviation of price x 2).


(Standard Deviation: Standard deviation is a mathematical formula that measures volatility)

Where to find Band Bollinger in Spider Software & how to use it?


Open new chart -> Press 'S' -> Band Bollinger (User can change the parameters too)

Things to Remember before using Band Bollinger:

1) Default Settings: Use default settings as they are back tested and works great.

2) Validate Signals: Confirm buy & sell signals with other indicators such as trendline.

3) Time Frame: Band Bollinger works great in all time frames.

4) Overbought: When stock prices touch the upper band, the prices are set to be overbought

5) Oversold: When the stock prices touch the lower band, the prices are set to be oversold.

 

[Spider Software]

Band Bollinger %B & Adaptive Moving Average Strategy​

How to apply Band Bollinger & AMA study in Spider Software?

New Chart-> Select Scrip->Press “S” -> Select Band Bollinger -> Parameters (Same for AMA)


Parameters:

• Time Frame: 30 min

• Adaptive Moving Average: (2,30,10)

• Band Bollinger %B : (S,50,1.00)



Long Entry: When Band Bollinger %B crosses 80 level upward & at the same time if the price is above Adaptive Moving Average line then go for LONG position.

Long Exit: Exit your trade when Band Bollinger %B crosses level 80 downward.


Short Entry: When Band Bollinger %B crosses level 20 downward & at the same time if the price is below Adaptive Moving Average then go for SHORT position.

Short Exit: Exit your trade when Band Bollinger %B Crosses level 20 Upward.

 

[Spider Software]

Why does it happen that some people Earn Profit in the Stock Market while others don’t?


One of the main reasons that people suffer the loss in the stock market could be an inability to use Charts to make the correct trading decisions.

Charts are easy to understand and help traders to interpret data at a glance. Moreover, EOD & Live Charts in Spider Software are unbiased and come directly from the source, which means there are no chances of misinterpretation or alteration from anywhere.


Charts are the fastest and easiest source that let you know about a particular stock and its market behaviors. Although, when you’re entering the market charts alone are not enough but helps you significantly cut time and effort when it calls for quick decision-making situations.


Charts contain the complete historical background about a particular stock and help traders in predicting the financial activity of the stock in the future. A professional trader can certainly temper financial trading decisions by using a Chart system but for those who use it in isolation; they miss out on its full potential.

For an instance, we all know that higher highs and higher lows mean a rising market. The trend is upwards. By properly analysing these charts, various decisions and strategies can be formulated to help traders to be at the front at all times.


Usually, trading charts & graphs are used to mark market trends and entering the market without analysing the Technical background of the stock would be nothing but gambling your investments over a highly unpredictable and highly volatile market. Various traders have their way of using Charts but few uses, every trader can easily use is analyse the price of stocks, rising and falling volumes, support & resistance levels etc. Because traders can’t memorize entire data, a trend of all stocks but Charts contain & show the entire data. These Charts and Strategies are definitely dependable indicators of all the factors that affect the market.