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).

 

[susanti9988]

Self- explanatory.

The "V" shapes at lower band and "Inverted V shapes" at Top bands are quite significant.

Hi..
I am newbie..., could you help me... please give me the afl of your pic chart.
thanks

regards,
susan

 

[columbus]

Hi..
I am newbie..., could you help me... please give me the afl of your pic chart.
thanks

regards,
susan

Hi susan,

The charts are prepared using TRADETIGER of sharekhan.I have no knowledge
of AFLs.Sorry.In every post ,I mention ,how to draw the chart.

 

[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).

Nifty gained smartly by 93 points.But major portion of it came before 11AM
and later on it was range-bound within 25 points only.

 

[timepass]

Generally, when the band is narrow, both the upper and lower bands get hit. Though the margin may be only 15-20 pts, it still is a trade. The problem is that if one tries to bank on by taking a trade after BB(20,1) breach, then there is hardly any room left.

 

[columbus]

Generally, when the band is narrow, both the upper and lower bands get hit. Though the margin may be only 15-20 pts, it still is a trade. The problem is that if one tries to bank on by taking a trade after BB(20,1) breach, then there is hardly any room left.

Hi TP,

Exactly correct.In such situations ,the better option would be start
accumulating once Lower of BB(20,1) is breached on every CANDLE's low.
Similarly start squaring off once Top of BB(20,1) is breached.
This is possible with Options , it is possible with FUTURES also, if the
balance is good enough.

 

[timepass]

Yes. BB(20,1) makes for a very narrow trading range. Of course, another option is to simultaneously look at a smaller TF (3 min) for guidance/trade when the 5 min bands are too narrow.

 

[tinchu76]

No trade for me y/day breached only once around 2.55.
Cant short since gap up and prive never came to lower bands
Should have added on every low:annoyed: but things look easy after 3.30pm

 

[tinchu76]

Columbus

Tought day t/day also... :annoyed:would like to see/mark ur trades of t/day
For me Princely gain of 10 points in 6 trades....

Broker happy:clap: any way all in the game.

 

[columbus]

Hi tinchu76,

Posted worm as wanted by you.Because of that I added a point also at 9.


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).

9.If the trade goes against you and if the divisions on Y-axis is not more
than 10,in that case you can add ONE or TWO trades,atleast 5 points apart.