BollingerWorm !!!

[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.

 

[nazimrushda]

Hi columbus,
pls mark entry & exit

 

[crusader]

Hi Columbus,

My observation in using BW the last few days is that BW works great in a range-bound market. In a trending market, where the price moves either up or down drastically, the simple rules of this strategy fails or it is kind of difficult to work with partial targets. Please correct me if I am wrong in my readings.

How do we know that it is a trending day or a trading day? Is there any other indicator which can be used along with this to give us better results? My knowledge in TA is limited and would need more help in this matter.

-Thanx

 

[timepass]

Posting 5min, 3 min and 1 min charts.. can anyone work out any relationship??

5min..

..3min..

1 min

 

[columbus]

Hi nazim/timepass,

 

[columbus]

Hi Columbus,

My observation in using BW the last few days is that BW works great in a range-bound market. In a trending market, where the price moves either up or down drastically, the simple rules of this strategy fails or it is kind of difficult to work with partial targets. Please correct me if I am wrong in my readings.

How do we know that it is a trending day or a trading day? Is there any other indicator which can be used along with this to give us better results? My knowledge in TA is limited and would need more help in this matter.

-Thanx

Hi crusader,

I mentioned many times that BW works well in Trending Markets.
(M-type,W-type ,N-type ,mirror N type ,V-type ,Inverted V-type).

 

[crusader]

^^ Looks like I need to understand more on these patterns to have better results.. Thanks Columbus.

 

[columbus]

^^ Looks like I need to understand more on these patterns to have better results.. Thanks Columbus.

http://www.traderji.com/day-trading/48558-bollingerworm-3.html#post554398

 

[columbus]

Your markings show the buy/sell at the peaks, whereas the rules say that the trade should be undertaken after the ema crosses over the other side. Now the confirmation / true signal would come only after the bottom most / topmost candle is fully formed and we are onto the next candle. Often we have seen the EMA cross back below/above the BB by the time the TF gets over. Hence the trade can be taken only on the next candle after the crossover is confirmed.

This, of course, is the issue with price action based trades, because the trader makes his move after the signal is complete, which renders him vulnerable to whipsaws . I don't think that many of us would be able to catch the bottom most/ topmost candle, because most of us maybe thinking that the next candle would he lower/higher, so better wait till the up/down move is complete and definitely reversed, as confirmed by EMAs re-entering the BB.

Hi tp,

I indicated only probable places which cuts & re-enter Bollinger Band and incidently they
fall on peaks/troughs ,may vary 2~3 points for different people.

YES, the envelope consisting of ema-2H and ema-2L will be formed only after the current candle
is formed.By that time we place the order ,the chart will have moved by one more candle.

This can be solved in 2 ways.
a.Choose a small time frame than the present one.
b.If candles are same colour ,ride the trend.If 2 opposite colour candles are present,exit the
trade once the present candle is 1/2 length of previous candle.This necessiate to have candles
in colour.

 

[timepass]

So I guess we can keep the colored candles in the smaller TF while the higher TF with lines only acts as the movement of the worm, and the smaller TF shows the immediate movement.