BollingerWorm !!!

[tinchu76]

Buy it was @12.20. But took out my SL. What SL do you generally use?

I think columbus said 14 points.

But one thing more, see carefully i think (in my charts) price never came to upper band so there was no reason for going long t/day.

In spot first long entry showed only at 1.15pm which i am still holding. Let us see how it unfolds.

 

[crusader]

Yes.. I normally use 15-20 pts as SL. I am using NF charts in which the body had pierced and reentered the BB at around 12:20. Hence went long... Not so fruitful day I would say.

 

[columbus]

I have been wanting to ask Columbus about that .. For me generally SL is whenever it becomes too painful to hold .. at 12.20 I bought june 5600 CE @49.65 .. it went down to 44.6 before bouncing back.. still holding it.

Hi timepass,

I am using this for OTM options, and I found it useless since the decay
associated with options is eating whatever little profits.Anyway it is an
experience.

 

[columbus]

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.

 

[columbus]

TP there r two issues here with me.

1)- I trade Mini NF with NS(spot) chart.
2)- My S/w includes y/day's price also it is not pure intraday as u guys follow.

So if I put charts it vl b create unnecessary noise & disturb the sanity of the thread.

So let us wait for the boss to revert.

Hi tinchu,

Earlier I used to use Nifty-Spot chart.The premium/Discount used to create
confusion ,especially if there is a big difference.So I used to keep the chart
of the instrument I am trading.
Sharekhan gives 3 or 5 days ,intra-chart.It is always good to keep ready
previous Highs/Lows .

 

[timepass]

Hi timepass,

I am using this for OTM options, and I found it useless since the decay
associated with options is eating whatever little profits.Anyway it is an
experience.

Time decay is the reason why I bought June option.

Did you have the occasion to trade as per BB(20,1) today (as you did in post no. 14). I am unclear about trading as per BB(20,1).

 

[columbus]

I have been wanting to ask Columbus about that .. For me generally SL is whenever it becomes too painful to hold .. at 12.20 I bought june 5600 CE @49.65 .. it went down to 44.6 before bouncing back.. still holding it.

Yes ,certainly at around 1200 Hrs one BUY signal came and another at 1300.
Of course signal at 1200 did not yield good result.Bad luck !!!

 

[timepass]

Beg your pardon, but the 5 min charts didn't show any buying opportunity at 1300. Also, now I realise that taking up the 12.20 buy call was risky because the stochastics had spent more than 5 bars in oversold zone. The image below shows the worm between 1200-1345hrs.

The 3 min worm showed a buy at 1300 hrs.

 

[columbus]

Time decay is the reason why I bought June option.

Did you have the occasion to trade as per BB(20,1) today (as you did in post no. 14). I am unclear about trading as per BB(20,1).

In post.14 there was no mention of BB(20,1) ,it was SMA-20.

It was discussed here.
http://www.traderji.com/day-trading/48558-bollingerworm-21.html#post513870

In case of BUY first.

target.1......Lower BB(20,1)
target.2......SMA-20
target.3......Top BB(20,1)
target.4......Top BB(20,2)

In case of SHORTING.

target.1......Top BB(20,1)
target.2......SMA-20
target.3......Lower BB(20,1)
target.4......Lower BB(20,2)

 

[columbus]

Beg your pardon, but the 5 min charts didn't show any buying opportunity at 1300. Also, now I realise that taking up the 12.20 buy call was risky because the stochastics had spent more than 5 bars in oversold zone. The image below shows the worm between 1200-1345hrs.
The 3 min worm showed a buy at 1300 hrs.

Hi tp,

Please refer my chart,the envelope is almost run parallel to Lower Band.
Infact a wick pierced the Band at 1315.
Keep the graph as far as possible ,Squarer,since it will eliminate false
impression due to elongation.