BollingerWorm !!!

[columbus]

Thanks. :thumb:

So here is my understanding

* 1st entry because after candle comes out of worm, reenters again
* Exit because again candle goes out of worm
* 2nd entry same as first
* Exit same as above
* 3rd entry same as first
* Exit same as above

I do not understood one thing

Why there is not entry point 2 candles before 3rd entry where previous candle was out of worm, any reason?

Hi trade4joisar,

Your understanding is perfect.
Since your chart is not that clear, I placed the last entry 2 candles later.
In fact I placed the entry/exit in a well defined manner at post #502,
which will clear your doubt.

 

[columbus]

If you start drawing straight line segments within the EMAs ,you will get
an idea of Entry & Exits.This looks a CHILD PLAY on EOD graph ,but on
live graph ,this is not that easy.The maximum profit is obtained if a line
moves from one band of BB to other band of BB.But one should remember that
more entries mean more risk.

 

[trade4joisar]

I was looking Adani enterprise & Asian Paint for this setup

Uploaded with ImageShack.us

In Adani, it gave 1 entry & exit perfectly, but then 2nd entry was not as expected.
In Asian Paint, entry was not as expected.

Does this setup require a stock with below qualities

• High volume
• Big range

In both cases what SL we should keep?

Hope i am not bothering you too much with my questions

 

[columbus]

I was looking Adani enterprise & Asian Paint for this setup

Uploaded with ImageShack.us

In Adani, it gave 1 entry & exit perfectly, but then 2nd entry was not as expected.
In Asian Paint, entry was not as expected.

Does this setup require a stock with below qualities

• High volume
• Big range

In both cases what SL we should keep?

Hope i am not bothering you too much with my questions

You are exactly correct.This method may not be suitable for some stocks
with less volatility and volumes.In examples you mentioned,SL will be hit
invariably,so better stick to either Nifty or Nifty stocks.

I think ASIAN paints had given SHORT signal at around 0245pm
when it had hit BB(20,1) not BB(20,2) and moved down SMA-20.

This system is good for Nifty stocks with few exceptions. (Like NTPC..)


Hope i am not bothering you too much with my questions:
Any system become ROBUST if it is discussed minutely,You are welcome.

 

[trade4joisar]

I think ASIAN paints had given SHORT signal at around 0245pm
when it had hit BB(20,1) not BB(20,2) and moved down SMA-20.

Thanks. :thumb:

So it means we also have entry & exit other than exiting & reentering BB worms?

Can you please elaborate more on this OR point me the link where it is explained in details with example ?

 

[columbus]

Thanks. :thumb:

So it means we also have entry & exit other than exiting & reentering BB worms?

Can you please elaborate more on this OR point me the link where it is explained in details with example ?

Hi t4j,

http://www.traderji.com/day-trading/48558-bollingerworm-23.html#post554486

The time frame here is rather less (3 min).Good for explaining the strategy
but too many entries.

Big dots ..............Full targets
Small dots............Not full targets.

 

[trade4joisar]

Hi t4j,

http://www.traderji.com/day-trading/48558-bollingerworm-23.html#post554486

The time frame here is rather less (3 min).Good for explaining the strategy
but too many entries.

Big dots ..............Full targets
Small dots............Not full targets.

I checked this but have some more questions (might be answered in previous post)

Looking at chart you point out, it seems all entry exit are related to candle coming out of BB worm & reenters, so

* What is use of inner BB
* What is use of SMA20

I think i am missing something here?

 

[columbus]

I checked this but have some more questions (might be answered in previous post)

Looking at chart you point out, it seems all entry exit are related to candle coming out of BB worm & reenters, so

* What is use of inner BB
* What is use of SMA20

I think i am missing something here?

Hi t4j,

* What is use of inner BB
As long as the candles are between BB(20,2) and BB(20,1) you continue
with the trend.

* What is use of SMA20
It gives an idea of the trend.

 

[columbus]

1.Use standard Bollinger Bands ,that is, bb(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 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 guidance in normal case also.

6.If candles are sandwiched between UPPER bands BB(20,2) and BB (20,1)
ride the trend OR LOWER Bands of BB(20,2) and BB (20,1) ride the trend.
If either ema-2H or ema-2L is cut twice by either BB(20,2),BB(20,1) or
SMA-20 in quick succession ,it indicates a END of a trend.Continuation is
indicated if both ema-2H and ema-2L are cut by SMA-20 and/or BB(20,1)
and/or BB(20,2).

 

[columbus]

Hi t4j,

Self-explanatory.