BollingerWorm !!!

[HARIVEL]

Now its priced
Thank u

 

[tinchu76]

ANS : Part-2


Now, notice something else .. at 10.27bar, SMA20 was 5201.47; at 10.39 bar, SMA20 was 5198.89. So, maybe we can use SMA20 as the filter, thus eliminating the need for any other indicator. This will help to keep the chart the shape of a tall rectangle.
.

TP would appreciate if u eloborate it further.

 

[timepass]

TP would appreciate if u eloborate it further.

It is marked on the chart. Check the averages on the data part (right hand side).

 

[timepass]

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.
(Or as per the volatility on that day).

 

[columbus]

Which time frame are you using ?? At 10.05, even the 3 min TF won't generate any signals..

If you carry previous day samples ,it is possible to have signal right from
beginning.

In such cases we can see 3 distinctive parts.

1.OVAL shape
2.NARROW neck
3.BREAK-OUT.

1.It is basically due to gap up/gap down.On a 5min TF ,it will continue upto
10.55AM .(9.15+20*5).

2.Only current day sample have influence on BB.

3.Breakout in either directions .Today we have breakout in down direction.

The problem is apart from ONE ,we do not have definite fixed timings.
They keep changing from day to day.It is not a fixed formula.For example
Breakout may not happen in a day.Today we have no OVAL shape formation
in the beginning.

(If any good example at a later date is shown up ,I will put it.)

 

[columbus]

In 10.40, 10.45 region, the EMAs are cutting the lines in quick succession, so as per Rule No. 7, it is the end of Uptrend and beginning of downtrend.

Have look at the picture.If market moves down ,then point.A moves downwards and point.A meets point.C indicating ,we are in the same trend.(RULE.8). If candle turns green then point.B meets point.C,which indicates END of trend. (RULE.7).

 

[columbus]

ANS : Part-2

Columbus, when defining this strategy, has shied from using any other indicators apart from the EMAs and BB. I can guess the reasons, using other indicators would flatten out the chart. I had mentioned, somewhere in this thread, about using stochs / RSI/ KST etc.. in combination with the worm, but he prefers using only EMAs and BB.

In answering to your post, I noticed something which seems to nullify the need of using ATR.

See, there are two buy signals : the first buy signal at 10.27 bar (Close : 5194.65 ATR : 6.9, so buy at 5201.55) and the second one at 10.39 bar (Close : 5190 ATR : 5.30, buy at 5195.3) .

Now, notice something else .. at 10.27bar, SMA20 was 5201.47; at 10.39 bar, SMA20 was 5198.89. So, maybe we can use SMA20 as the filter, thus eliminating the need for any other indicator. This will help to keep the chart the shape of a tall rectangle.

Of course, the visual clues as specified in the strategy i.e. the EMAs cutting BB(20,1) are the best, since Columbus does not even want to use the data window to check the values of bars and EMAs etc..

Columbus, your inputs on this please.

Timepass,

Yes,I prefer working with BB and EMAs.
After working with indicators ,I personally found these indicators useful
according to these ranks.

1.Bollinger Band
2.RSI/ROC/KST
3.Stochastics
4.MACD/MACDH

The flattening problem can be solved by plotting in another panel.
Another advantage with BB is ,they take care of volatility automatically.

I want to keep the software as simple as possible.In the beginning we had
fewer points.After discussing with many boarders (including you) I added
2 useful points such as BB(20,1)[For riding a trend] and ADDs.

Who knows by adding a small add-on ,we may solve a big problem.

 

[timepass]

If you carry previous day samples ,it is possible to have signal right from
beginning.

In such cases we can see 3 distinctive parts.

1.OVAL shape
2.NARROW neck
3.BREAK-OUT.

1.It is basically due to gap up/gap down.On a 5min TF ,it will continue upto
10.55AM .(9.15+20*5).

2.Only current day sample have influence on BB.

3.Breakout in either directions .Today we have breakout in down direction.

The problem is apart from ONE ,we do not have definite fixed timings.
They keep changing from day to day.It is not a fixed formula.For example
Breakout may not happen in a day.Today we have no OVAL shape formation
in the beginning.

(If any good example at a later date is shown up ,I will put it.)

This is something new from your side . So far you have advocated using only the current session's chart, which basically reduces one's trading session to 11am-2.30/3.00pm.

So, from today onwards, I'll post two charts, one showing today's chart only, and one continuing from yesterday, and we will wait to hear your comments on it.

Timepass,

Yes,I prefer working with BB and EMAs.
After working with indicators ,I personally found these indicators useful
according to these ranks.

1.Bollinger Band
2.RSI/ROC/KST
3.Stochastics
4.MACD/MACDH

The flattening problem can be solved by plotting in another panel.
Another advantage with BB is ,they take care of volatility automatically.

I want to keep the software as simple as possible.In the beginning we had
fewer points.After discussing with many boarders (including you) I added
2 useful points such as BB(20,1)[For riding a trend] and ADDs.

Who knows by adding a small add-on ,we may solve a big problem.

Yes, I personally use RSI+stochs. As for ADR as mentioned by Vikas, I found it unnecessary because the values of various BB/20SMA give you the effective filter. I have not used KST much because I don't understand it much .. but sharekhan seems to rely on it bigtime.

 

[HARIVEL]

This is something new from your side . So far you have advocated using only the current session's chart, which basically reduces one's trading session to 11am-2.30/3.00pm.

So, from today onwards, I'll post two charts, one showing today's chart only, and one continuing from yesterday, and we will wait to hear your comments on it.
Yes, I personally use RSI+stochs. As for ADR as mentioned by Vikas, I found it unnecessary because the values of various BB/20SMA give you the effective filter. I have not used KST much because I don't understand it much .. but sharekhan seems to rely on it bigtime.[/QUOTE]

Dear Timepass

Gm You know very well i am following this thread Now i got more in this but my basic problem is my broker and platform.

I already told you in Ventura1 (pointer) Ems high low and charts coupled with previous data also not available.

So i want to move from ventura, pls sugust me the best platform provider. R u sug TT is best then what is the cost and procedure.

Another thing somebody is using Stoch 8,3,4. is it suitable with BBw ??

Replay me when you hve a time

 

[timepass]

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.
(Or as per the volatility on that day).

Also, today's bollingerworm as continued from yesterday. Anyway today was a difficult day to trade by this technique, small trades with stoplosses getting hit all the time.

Dear Timepass

Gm You know very well i am following this thread Now i got more in this but my basic problem is my broker and platform.

I already told you in Ventura1 (pointer) Ems high low and charts coupled with previous data also not available.

So i want to move from ventura, pls sugust me the best platform provider. R u sug TT is best then what is the cost and procedure.

Just open an account with Sharekhan, you don't even need to trade with them. Call up their office and they will send someone to you. I think the new members are getting very favorable terms these days.

Another thing somebody is using Stoch 8,3,4. is it suitable with BBw ??

Yes, it works ok. I prefer to use Sharekhan's default 5,3,5. The results are almost the same for both.

Replay me when you hve a time