Discussion: Bollinger Bands

I have been trading with Bollinger bands for a quite a time. I would like to share my trading setup here and get your feedback.

> I believe in learning by sharing.

Note: I take very few trades per week.

At first, let’s start with a poll.

Have you ever used Bollinger Bands?

  • Yes
  • No

0 voters

Important: The posts in this thread are geared towards learning and honing of my skill set. I do not recommend any one to follow my trading. Do your own diligent research before taking a trade.

Had to take a break from trading for few days.

This is the first trade based on BB, Since I started this thread.

Trade Setup 25April :

  1. In pre-open market, Nifty forms double top at 10680 and quickly slides down. Negative for bulls.
    check here:https://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/pre_open_market.htm

  2. In broader sense 10650 is a strong resistance.

  3. Price trends in a narrow range for the first half of the day, stoch trends between OB to OS.

  4. At 1:05 shooting star with volume

  5. Waiting for price moving away from BB. Stoch shows a slight divergence. And At 1:30 , I buy 10600PE …exited at 2:10 after seeing doji and hammer. All I do is keep amending my stop-loss.

My Mistake: At 2:20pm I go long seeing doji and hammers had to book a loss

Lesson Learnt:
Should have waited for the price to break the doji high and the stoch to come to neutral zone.

Thanks to traderji I have learnt a lot from there… I mean a lot

Actually I will not be using BB every time. I just check it before taking a trade. I like to keep the chart clean, Just the volume, price and Stoch.

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