BollingerBands

Hi kamalesh,

That is excellent.On a choppy day BB with RSI works very well.
But on strong trending day ,the picture may be different.Here is
last trading day's Nifty futures with BB and RSI.

Probably like many , i do start off (sometimes even stick to) with the 1 min TF, Just in case u have a lower brokerage and dont wanna wait for too long. I have been looking into four simple observations - BB, sma 10, RSI and MACD. As i have observed these indicators closely ever since columbus bhai has started off this thread, let me put up a few basic points that i think might be helpful in fetching a few points and make up ur day.

You can find the settings in the chart itself,
Wait for a BB pierce, RSI and MACD cross over.Once the BB is pierced its NOT a confirmation to take a trade.I definitely wait for a RSI crossover keeping an eye on MACD as well. RSI goes with the BB's and give you a good entry, but if you want confirmation you need to wait for the lagging MACD where you might lose out on a few points but NO HARM to WAIT. Alternatively an indication of a definite change in trend is to wait for the price to cross above/below the SMA 10. This helps in reducing risk and getting a few points never mind losing out a few. On choppy days like Friday the 1 min looks a perfect setup.I look only at 1,3 and 5 .If your looking to book a few points here and there 1 min is the best.If you think you are riding with the trend just keep looking at the 3 and 5 min for a indication of change in trend.

If you are looking for a positional entry 15 min is the best to go for, just because you are into and out of the trade as soon as the trend changes and this lets you make most with out missing out some gains.

Just a few observations, very basic ..Hope seniors can add some more.

Hi kamalesh ,

Excellent analysis,which will be useful to many.

In initial stages the lower time frame is advisable but as the time progresses
data on 1-min time frame appears to be NOISY.

Nevertheless in initial on 1-min time frame the bands start appearing within
20 minutes of market opening in case of BB(20) but they start appearing
after ONE HOUR in case of 3-min time frame .(20*3min)

Hello columbus ji,

I too facing the same problem i have written to teamsharekhan lets see what happens

Some of my observations:

The attached chart shows the Nifty candlestick 3m TF BB 20,2 RSI 10 (red) with a moving average of RSI (green). RSI chart has the 70, 50, 30 and 20 levels marked

I have noticed that wheven RSI goes over 70/30 and the candlestick is touching or close to the upper/lower BB a pullback is due and more so when RSI goes to 90/10 levels (notice how sharply RSI moves back once it reached either of the levels). There are usually retracements which will pullback close to the middleBB (around 20 pts move)

Notice the MA of RSI (green line) whenever the average RSI moves over 70 or 30 levels there is a bigger turnaround in nifty. (notice the 10:20, 10:40 and 2:20 reversals approx 40pts on a day when nifty H-L was 75pts)

Do bear in mind the RSI can stay at over bought levels for extended periods, hence we may not be able to tell when a turnaround may happen but sometimes I have noticed that just before a turnaround is about to happen RSI moves sharply in the opp direction that the nifty moves.

It may also help to know that in some cases, nifty moves lower making lower pivot highs and low but RSI moves up which can also sugguest a turnaround.

I hope that by watching RSI and BB together we can make some more observations because even with these rules at times I find it hard to take a call convincingly. However I have noticed that I am able to predict it better that looking as BB and moving average alone.

(Forgot to mark the 12:50 RSI peak around the 90 level)

YES on a choppy day,BB with RSI works very well.
On a strong trending day, it may not work.

RSI itself seems to spike just before a retracement. I think that is evident by the number of spike above the 70 mark that cause nifty to retrace.

If it is trending then there is less trading and easier too, so we don't need to look at RSI and BB that often SMA or MACD could work.

But I am happy that RSI (red) still works. Because I find it difficult to trade with BB and it is harder on a 3min TF.

I usually don't trade BB. I like to get in when it is trending and get out as soon as it stops. It is just recently I got interested in catching the tops and bottoms

RSI graph with Bollinger Bands of INFOSYS of last trading day.
RSI is in blue colour. Have a look WHITE line which is 20-SMA.
It was trending upwards ,but RSI was in opposite direction.

I would say infosys went wild after 2PM look at the candles compared to the 10-11AM

BB (20,2) with 3-min and 5-min are presented.
Today we had a STRONG trending day and BB
with RSI did not work well.