BollingerWorm !!!
- Thread starter columbus
- Start date
Referring specifically to the "W" formed between 12:05 to 12.50, EMA 2L had crossed BB(20,1), so one would've covered the shorts (I did), and maybe entered longs (I didn't). Then EMA 2H crossed MA 20, and reverted. So, should that reversal from MA 20 be considered as RE-ENTRY ?? What other parameters should one consider for continuation ?
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 OUTER of BB(20,1) and INNER band
BB(20,2) then ride the trend .
7.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.
8.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).
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 OUTER of BB(20,1) and INNER band
BB(20,2) then ride the trend .
7.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.
8.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).
Thanks Columbus for your lucid explanation.I would like to know further the exact point of entry when body of worm goes out and reenters band again.It is at least 3rd candle and price is already at or near 20sma .Should it be break of H/L of that candle?or any other way to get better entry price.and what is SL Top/Bottom of swing Thanks
Hi Shripadk,
Thank you.This is a trickish issue.One full candle is just 5 minutes.We take
a entry if price moves further the Band, and if it moves in a desired manner
it is OK, or otherwise add ONCE or TWICE.Generally keep a SL of 10~15 points
depending upon your risk profile.
Thank you.This is a trickish issue.One full candle is just 5 minutes.We take
a entry if price moves further the Band, and if it moves in a desired manner
it is OK, or otherwise add ONCE or TWICE.Generally keep a SL of 10~15 points
depending upon your risk profile.
