$$my success story and my live tread[nifty&option]$$

[sumitdasjoshi]

Bollinger Bands

Bollinger bands are used to measure a markets volatility. Basically, this little tool tells us whether the market is quiet or whether the market is LOUD! When the market is quiet, the bands contract; and when the market is LOUD, the bands expand. Notice on the chart below that when the price was quiet, the bands were close together, but when the price moved up, the bands spread apart.

Thats all there is to it. Yes, we could go on and bore you by going into the history of the Bollinger band, how it is calculated, the mathematical formulas behind it, and so on and so forth, but we really didnt feel like typing it all out.

In all honesty, you dont need to know any of that junk. We think its more important that we show you some ways you can apply the Bollinger bands to your trading.

Note: If you really want to learn about the calculations of a Bollinger band, then you can go to www.bollingerbands.com

 

[sumitdasjoshi]

The Bollinger Bounce

One thing you should know about Bollinger Bands is that price tends to return to the middle of the bands. That is the whole idea behind the Bollinger bounce (smart, huh?). If this is the case, then by looking at the chart below, can you tell us where the price might go next?

If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands.

Thats all there is to it. What you just saw was a classic Bollinger bounce. The reason these bounces occur is because Bollinger Bands act like mini support and resistance levels. The longer the time frame you are in, the stronger these bands are. Many traders have developed systems that thrive on these bounces, and this strategy is best used when the market is ranging and there is no clear trend.

Now lets look at a way to use Bollinger Bands when the market does trend.

 

[sumitdasjoshi]

Bollinger Squeeze

The Bollinger squeeze is pretty self explanatory. When the bands squeeze together, it usually means that a breakout is going to occur. If the candles start to break out above the top band, then the move will usually continue to go up. If the candles start to break out below the lower band, then the move will usually continue to go down. Looking at the chart above, you can see the bands squeezing together. The price has just started to break out of the top band. Based on this information, where do you think the price will go?

If you said up, you are correct! This is how a typical Bollinger Squeeze works. This strategy is designed for you to catch a move as early as possible. Setups like these dont occur everyday, but you can probably spot them a few times a week if you are looking at a 15 minute chart.

So now you know what Bollinger Bands are, and you know how to use them. There are many other things you can do with Bollinger Bands, but these are the 2 most common strategies associated with them. So now you can put this in your traders toolbox, and we can move on to the next indicator.

 

[sumitdasjoshi]

 

[kaly422000]

more powerfull indicater as similer to this indicater is ichimoku kinko hayo.
a whole long story. if we can master it nothing stands. so give some analysis on that

 

[sumitdasjoshi]

well i belive in kiss keep it simple and stupid.

 

[munnabhai208]

Sumit,
You are doing a good job.It is definately helping the beginners like me.Keep it up....

 

[sumitdasjoshi]

well friend last trade close today at 5333
open this at 5282 and closed 5333.
profit of 51 points.
i have one short position at 5331.

 

[sumitdasjoshi]

well friend i have to exit my short at 2 point loss because my charting sowftwear just hand at a mani time and i dont want to take risk will i am away from my laptop so i have to close position.
today s profit 43 points.
over all point made 226.5
over all money made by system is=11325 rs.
well i would have gain with my short position but the charting sowftwer hang i realy hate that when it happens.

 

[sumitdasjoshi]

MACD

MACD is an acronym for Moving Average Convergence Divergence. This tool is used to identify moving averages that are indicating a new trend, whether its bullish or bearish. After all, our #1 priority in trading is being able to find a trend, because that is where the most money is made.

With an MACD chart, you will usually see three numbers that are used for its settings.

* The first is the number of periods that is used to calculate the faster moving average.

* The second is the number of periods that are used in the slower moving average.

* And the third is the number of bars that is used to calculate the moving average of the difference between the faster and slower moving averages.

For example, if you were to see 12,26,9 as the MACD parameters (which is usually the default setting for most charting packages), this is how you would interpret it:

* The 12 represents the previous 12 bars of the faster moving average.

* The 26 represents the previous 26 bars of the slower moving average.

* The 9 represents the previous 9 bars of the difference between the two moving averages. This is plotted by vertical lines called a histogram (The blue lines in the chart above).

There is a common misconception when it comes to the lines of the MACD. The two lines that are drawn are NOT moving averages of the price. Instead, they are the moving averages of the DIFFERENCE between two moving averages.

In our example above, the faster moving average is the moving average of the difference between the 12 and 26 period moving averages. The slower moving average plots the average of the previous MACD line. Once again, from our example above, this would be a 9 period moving average.

This means that we are taking the average of the last 9 periods of the faster MACD line, and plotting it as our slower moving average. What this does is it smoothes out the original line even more, which gives us a more accurate line.

The histogram simply plots the difference between the fast and slow moving average. If you look at our original chart, you can see that as the two moving averages separate, the histogram gets bigger. This is called divergence, because the faster moving average is diverging or moving away from the slower moving average.

As the moving averages get closer to each other, the histogram gets smaller. This is called convergence because the faster moving average is converging or getting closer to the slower moving average. And that, my friend, is how you get the name, Moving Average Convergence Divergence! Whew, we need to crack our knuckles after that one!
Ok, so now you know what MACD does. Now Ill show you what MACD can do for YOU.