If Bollinger Bands work for some of you guys, that's great. But it certainly does not have anything to do with statistical validity, because its premise is flawed. It violates minimum sample size considerations (its "look-back" period), and makes unwarranted assumptions regarding probability distribution. But, hey, if it works...
Anyone using Bollinger Bands to make money?
- Thread starter jbtrader23
- Start date
Hey, check this out. Every dot (10-11) is a valid entry and every X (1) is a failed entry on today's chart.
Today with its tight range was perfect for BB play. Enjoy!
P.S.: Reminds me of statistics: If I had diarrhea for a week then a terrible constipation for another week, I can still say that my bowel movement in the last 2 weeks was statistically average...
Today with its tight range was perfect for BB play. Enjoy!
P.S.: Reminds me of statistics: If I had diarrhea for a week then a terrible constipation for another week, I can still say that my bowel movement in the last 2 weeks was statistically average...
I use this too......my favourite......it's useful to have the band. I can use it in several ways.
First is that there is a lower chance of price penetrating outside the band.
Especially if it's a wide band and especially if price is at near one side of the band. It has lower chance of price penetrating the other side soon.
If the band is narrow then theres a higher chance of penetration soon in one of the sides. It's called BBW. (the width).
You can run this BBW as an indicator and it will form a rising and falling line like a wave, a single line like RSI and it will help u see if the BB will contract or expand. Or when it is severely wide or severely narrow. BBW is useful.
Another is when it pierce outside of the band, it will either come back in again or pierce a few more times then come back in. I use other indicators to help decide, not just rely on BB.
An example is during the S&P500 Jan top recently, daily chart says it pierced upper BB, then come back in some, then went downwards. At that time when it pierced once, I was convinced it would go downwards soon because BB is supported by others like very high stochastics, no overhead resistance, and signs of exhaustion. Plus seasonality (after dec/ early jan rally).
It's a nice indicator.....anyways like any indicator, it's just to help us visualize so we can see better and help decision making.
First is that there is a lower chance of price penetrating outside the band.
Especially if it's a wide band and especially if price is at near one side of the band. It has lower chance of price penetrating the other side soon.
If the band is narrow then theres a higher chance of penetration soon in one of the sides. It's called BBW. (the width).
You can run this BBW as an indicator and it will form a rising and falling line like a wave, a single line like RSI and it will help u see if the BB will contract or expand. Or when it is severely wide or severely narrow. BBW is useful.
Another is when it pierce outside of the band, it will either come back in again or pierce a few more times then come back in. I use other indicators to help decide, not just rely on BB.
An example is during the S&P500 Jan top recently, daily chart says it pierced upper BB, then come back in some, then went downwards. At that time when it pierced once, I was convinced it would go downwards soon because BB is supported by others like very high stochastics, no overhead resistance, and signs of exhaustion. Plus seasonality (after dec/ early jan rally).
It's a nice indicator.....anyways like any indicator, it's just to help us visualize so we can see better and help decision making.
Yes I use BB's to make money, but let me clarify as your question is too general in nature.
BB's when used with other indicators such as stochastics, MACD, RSI, etc. can be a very valuable tool in making a trading decision.
As I have stated in other forums, Indicators only indicate a potential. I use charting and F/A with indicators, and daily market sentiment, to make a trading decision.
BB's when used with other indicators such as stochastics, MACD, RSI, etc. can be a very valuable tool in making a trading decision.
As I have stated in other forums, Indicators only indicate a potential. I use charting and F/A with indicators, and daily market sentiment, to make a trading decision.
BB's are another effective tool that belong in the toolbox. Not every indicator on its own can do it all. I find using BB's in conjunction with other items help. To each his own, but to just broadly denounce a single indicator as invalid just because they haven't worked for you in the past is nonsense. You can be totally effective without BB's and use other methods, but they work for me and I'll continue to keep using them. I think it's more about personal preference and specific backtesting methods than anything else.
Hey, Maestro, it's been a while. Have you been keeping a low profile lately?Quote from MAESTRO:
Good man, Thunder! It is exactly what makes all the indicators that are based on a moving (sliding) chart window invalid! I could not say it better myself!