BollingerWorm !!!

[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 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).

 

[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 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).

 

[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 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).

 

[mangup]

Dear Columbus,

I read the whole thread. I suppose buy will get triggered only if 2EMAL crosses bottom band (20,S,2.0) from outside & come inside.

My queries are -
1. If above happens then it's ok. If not, are there ary alternative minor changes that we can consider to be a buy case?
2. Is there any trailing SL concept?
3. How can we judge to be Weak Long & Strong Long cases? Which are those parameters/conditions which suggests us to be Weak Long & Strong Long?
4. Can we say it to be a Long if only candles lower shadow/body is outside bottom band but not the 2EMAL and 2 EMAL remain inside the band without going out?
5. If our first position is in Loss, till how many positions should we keep on Adding. If we are adding so what are those conditions which says to cover it up or will it be a SAR point?
6. Can we carry forward the position to next day assuming the risk of gap opening?
7. Can you pl explain the significance of middle line of BB & how to use it?

 

[columbus]

Dear Columbus,

I read the whole thread. I suppose buy will get triggered only if 2EMAL crosses bottom band (20,S,2.0) from outside & come inside.

My queries are -
1. If above happens then it's ok. If not, are there ary alternative minor changes that we can consider to be a buy case?
2. Is there any trailing SL concept?
3. How can we judge to be Weak Long & Strong Long cases? Which are those parameters/conditions which suggests us to be Weak Long & Strong Long?
4. Can we say it to be a Long if only candles lower shadow/body is outside bottom band but not the 2EMAL and 2 EMAL remain inside the band without going out?
5. If our first position is in Loss, till how many positions should we keep on Adding. If we are adding so what are those conditions which says to cover it up or will it be a SAR point?
6. Can we carry forward the position to next day assuming the risk of gap opening?
7. Can you pl explain the significance of middle line of BB & how to use it?

Dear mangup,

I will give reply ,once I find time,please bear with me.

 

[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 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).

 

[timepass]

I can answer this one question at least. This strategy is intended to be intraday only and you are supposed to square off your positions the same day.

6. Can we carry forward the position to next day assuming the risk of gap opening?

As to the middle line (I guess you are referring to 20MA), all the lines act as S/R. If you are long from EMAL pierceing BB(20,1) from bottom, then 20MA is T1, upper BB(20,1) is T2 and upper BB(20,2) is T3...

 

[columbus]

Dear Columbus,

I read the whole thread. I suppose buy will get triggered only if 2EMAL crosses bottom band (20,S,2.0) from outside & come inside.

My queries are -
1. If above happens then it's ok. If not, are there ary alternative minor changes that we can consider to be a buy case?
2. Is there any trailing SL concept?
3. How can we judge to be Weak Long & Strong Long cases? Which are those parameters/conditions which suggests us to be Weak Long & Strong Long?
4. Can we say it to be a Long if only candles lower shadow/body is outside bottom band but not the 2EMAL and 2 EMAL remain inside the band without going out?
5. If our first position is in Loss, till how many positions should we keep on Adding. If we are adding so what are those conditions which says to cover it up or will it be a SAR point?
6. Can we carry forward the position to next day assuming the risk of gap opening?
7. Can you pl explain the significance of middle line of BB & how to use it?

Hi mangup,

1. If above happens then it's ok. If not, are there ary alternative minor changes that we can consider to be a buy case?
2. Is there any trailing SL concept?
3. How can we judge to be Weak Long & Strong Long cases? Which are those parameters/conditions which suggests us to be Weak Long & Strong Long?

1a)I am placing a chart ,which will clear your doubt.To place a BUY trade,
it is not necessary that the candle should hit the Lower Band of the BB.
Yes,it is good ,if it does so.
2a)SL is basically depends on risk appetite of individual.It should not be
too big (loss will be more)or too small(invariably it will be hit).
There are 5 lines which divides the entire band into 4 zones.
1.BB20-2top
2.BB20-1top
3.SMA-20
4.BB20-1Low
5.BB20-2Low
I think Trailing SL will look like this.(I am not using yet)
If the candle is hitting 2. then keep TSL as 4.(Previous to previous line)
provided if the gap of each zone is narrow.

3a)Really there is no strict rules to judge, but you have thumb rules.
Have a look at difference between 2 consecutive readings on Y-axis.
If it is less than 10 than it is called weak market.
But it keeps on changing throughout the day.

 

[columbus]

Dear Columbus,

I read the whole thread. I suppose buy will get triggered only if 2EMAL crosses bottom band (20,S,2.0) from outside & come inside.

My queries are -
4. Can we say it to be a Long if only candles lower shadow/body is outside bottom band but not the 2EMAL and 2 EMAL remain inside the band without going out?
5. If our first position is in Loss, till how many positions should we keep on Adding. If we are adding so what are those conditions which says to cover it up or will it be a SAR point?
7. Can you pl explain the significance of middle line of BB & how to use it?

Hi mangup,

4A)The concept of "V-shape" and "Inverted V-shape" is introduced
especially if ema-2H and ema-2L are not meeting at the BANDS but
inside the BANDS.

5A)Just like SL ,ADDs are also depedent on risk profile of the
individual.Basically it depends on the time left for the closure
of the market.Do not go for a ADD just 2 hours away from market
closure.
There is no harm in going for one or two adds.
If first position is at 5000 ,another add at 4995 is not a great
add.If should be atleast 20~25 points away.

The border "timepass" explained nicely answer for 6.

7A)SMA-20 is so closely associated with BB ,in such a manner that
plotting BB will give SMA-20 (middle line).It will divide the BBs
into two halves.In case of strong bullish/bearish markets this
line can be regarded as SL line.

 

[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 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).