Tales From The Trenches: A Simple Bollinger Band® Strategy

This is a good example of a flat market that is range bound and not moving in any particular direction. If the DarkGreen histograms of the! The inspiration for this section is from the movie Teenage Mutant Ninja Turtles, where Michelangelo gets super excited about a slice of pizza and compares it to a funny video of a cat playing chopsticks with chopsticks. The blinking signals usually occur for repainting strategies or the ones which look into future. This level of mastery only comes from placing hundreds, if not thousands of trades in the same market. You can increase your likelihood of placing a winning trade if you go in the direction of the primary trend and there is a sizable amount of volatility. Before I get into how to use the Bollinger Band, let me explain to you exactly what it is.

Day Trading with Bollinger Bands. Share Flip Pin Email Day Trading Downtrends with Bollinger Bands. Bollinger bands help assess how strongly an asset is falling, and when the asset is potentially strengthening (to the upside) or reversing. This information can then be used to help make trading decisions.

How Can You Use This Information To Help You?

The next day, the stock made a move to the downside. This is case where the selling continued in the face of clear oversold territory. During the selloff there was no way to know when it would end. There are times, however, when the strategy is correct, but the selling pressure continues. During these conditions, there is no way of knowing when the selling pressure will end. Therefore, a protection needs to be in place once the decision to buy has been made.

The strategy correctly got us into that trade. Both Apple and IBM were different because they did not break the lower band and rebound. Instead, they succumbed to further selling pressure and rode the lower band down. This can often be very costly. In the end, both Apple and IBM did turn around and this proved that the strategy is correct.

The best strategy to protect us from a trade that will continue to ride the band lower is to use stop-loss orders. In researching these trades, it has become clear that a five-point stop would have gotten you out of the bad trades but would have still not gotten you out of the ones that worked. In every scenario, the break of the lower band was in oversold territory.

The timing of the trades seems to be the biggest issue. This selling pressure is usually corrected quickly. When this pressure is not corrected, the stocks continued to make new lows and continue into oversold territory. To effectively use this strategy, a good exit strategy is in order. Stop-loss orders are the best way to protect you from a stock that will continue to ride the lower band down and make new lows.

Tales From The Trenches: The strategy tries to catch up on trends and then profits on them. Stop Loss for Sell Entry: Place stop loss above the most recent resistance level. Ensure that the following conditions or rules are in place before initiating an exit or take profit:. DivStochv5 trails momentum or speed of price. Created by John Bollinger, the Bollinger Bands shares a lot of similarities to the moving average Envelopes indicator.

However, the Bollinger Bands outer bands changes in relation to volatility. The pips Momentum indicator offers bullish and bearish entry signals. This is mainly as a result of the composition of the indicator i. Chart Setup MetaTrader4 Indicators: Is there a library somewhere? Everything you mentioned is possible to do in a Excel sheet.

Right now, we do not cater to individual projects. Please send us a note on your idea and we would try to create an Excel sheet for it and post it in the website. Time frame 1 day. All Nifty 50 stocks on list. List to be scanned and stocks that match criteria to be traded automatically as per following strategy. I prefer a formula but if we start I will try to make an XL sheet for you.

When we write the indicator formulas it will be easy for XL experts. It will be great if we can add back and forward testing later. Eager for your response! Sir, when i backtest it is coming with some different results with the 5min TF, what could be the reason?

All trades 90 Consecutive 8 6 10 Largest win Consecutive 12 8 7 Largest loss What is the significance of Parameter value 20 in Bollinger Band? Can we synchronise Bollinger band with changing its parameter to 12 instead of 20?

Not Sure what i am doing wrong, But i am not getting the same back testing results as above. I have added commission. I have taken the 1 minute data from your website itself. Your email address will not be published. Subscribe to Trading Tuitions. Currently you have JavaScript disabled.

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Learn a simple day trading strategy using Bollinger Bands and MACD by Markus Heitkoetter. Two indicators and two steps to profit from intraday trends. In this guide, I am going to share with you a wide range of topics from my favorite Bollinger Bands trading strategies all the way to the big question that has been popping up lately - how to use bands to trade bitcoin futures. "Bollinger on Bollinger Bands.". Bollinger Bands can be used for intraday trading purpose. This is simple and profitable strategy. You can get signals everyday from this strategy. In Bollinger Bands .