Bolling Bands + RSI settings for Weekly chart ......

M

md2324

Good Evening,
Can someone help me with the conversion of taking the Default settings for Bollinger Bands and the RSI on a Daily chart , and converting those settings for the use of both Indicators on a Weekly Chart ?

And even on a Monthly chart too I guess

By default, a BollingerBand usually has a 20 day look back period.
So for a Weekly chart, change that to an 50 day look back period ?

And for a Monthly chart, make it a 90 day loom back period ?

I just want to make sure that I catch all of the Extremes via both Indicators , while at the same time the Indicators are " Smooth " , I.E. don't show eratic spikes up or down , due to the fact that I don't have the Look Back periods at an ideal setting

Thanks so much
 
I'm not sure what your using for charting, but most charting programs calculate indicators off bars, not days.

I myself when using a weekly chart and daily chart, use the same settings for bars look back for both.

Their is never an ideal and it's all based off how your using them and why. Their just a tool and need to know what your tool is doing.
 
Well, I would not advise to change what you using on smaller timeframe to change any on larger, adapting to what you see is more important than going faster or slower. I love longer term trading, I don't use any indicators on yearly or monthly, weekly and daily I use same MACD, Bollingers and RSI, pretty much standard and MACD and RSI give me ideas of divergences, whereas Bollingers fine tunes then I drop down to two minute charts to fine tune even more.

Nothing but price will give you extremes. Take a 9 year chart and you can tell where the extremes have been and taking comparison of current price to past will show you possible extremes.
 
md2324 said:
Good Evening,
Can someone help me with the conversion of taking the Default settings for Bollinger Bands and the RSI on a Daily chart , and converting those settings for the use of both Indicators on a Weekly Chart ?

And even on a Monthly chart too I guess

By default, a BollingerBand usually has a 20 day look back period.
So for a Weekly chart, change that to an 50 day look back period ?

And for a Monthly chart, make it a 90 day loom back period ?

I just want to make sure that I catch all of the Extremes via both Indicators , while at the same time the Indicators are " Smooth " , I.E. don't show eratic spikes up or down , due to the fact that I don't have the Look Back periods at an ideal setting

Thanks so much
More...
%%
Yes,MD2; thats right, use all those time frames.For bands or moving averages;
NO you dont change the settings.There is NO one time or indicator period that catches ''all extremes'' Only hindsight catches ''all extremes'' I like weekly charts, 52[weeks] of them may mean something; but to enter you may want to look @ bid ask spread.......................................................

If you are really wanting to change something, change the periods on RSI.That may not help you profit,but RSI probably could not get any worse.NOT a prediction, wisdom is profitable to direct.
 
Thank you everyone for your replies

Handle123 ,
I really like the following statement that you made..... " Take a 9 year chart and you can tell where the extremes have been and taking comparison of current price to past will show you possible extremes. "

Also, you mentioned that you too like to trade / base entries off of Longer term charts , as do I

My main thing is .... I love to base my Trades for Entries off of the Daily, 2 day, 3 and 4 day charts, weekly and monthly charts ( With more emphasis Always given to the Weekly and especially Monthly chart..... so Long as I get the IDEAL setups for an Entry that I am looking for ).

My problem is that.... Since I get my enties off of these Longer term charts, the Stops ( if placed Below the most recent Low for a Long entry trade or placing my stop above the most recent High for a Short entry trade , the Risk in pure $ can be huge ). Take an entry based off of a Daily or 2 Day chart ( where each candle represents 2 days worth of trading ) and you can have a real world Dollar Risk of $1,000 or more,
And IMO, you' have to place your Stop at these most recent Lows or highs as to not get taken out of a trade on a " Normal Pullback " / 1 Standard Deviation move in price.

If the Entry is based off of a 4 Day chart or Weekly chart , the Risk ( Stop placement from the Entry ) can be a Risk of $1,500 - $2,500

Place a Stop based soley off of a Monthly chart, and the Average STRUCTURAL Stop placement placed Below the most recent Low for a Long entry trade or placing my stop above the most recent High for a Short entry trade , will be a $ risk on Average of $3,000 - $5,000

Of course the Stops RISK in real $ is different , since some Futures markets are less volatile than the others, as well as they all have different PER 1 point risks ..... Silver can have you having to RISK $1,500 on a trade based on you placing your Stop at the most recent Lowest Low when going LONG the trade , where as Corn or Cocoa can have a Risk of $600 if you place/base your Stop placement based on a most recent Lowest Low for a Long trade

Thoughts and insight into the topic at hand is greatly appreciated, Thanks so much
 
Handle123,
Do you mean to buy ATM options of the SPY or SPX when Long the ES ?

GDX ATM options for GOLD

USO for Crude Oil

UNG for Natural Gas


My main question though is ...... How could we Hedge positions in the Grains and Softs via using Options ?
Are there Liquid Stocks/Options to Hedge against the Grains ( Corn, Soybeans and Wheat ) and the Softs ( Orange Juice, Sugar, Cocoa, Coffee, etc. ) that you recommend ?

Thank you again
 
md2324 said:
Handle123,
Do you mean to buy ATM options of the SPY or SPX when Long the ES ?

GDX ATM options for GOLD

USO for Crude Oil

UNG for Natural Gas


My main question though is ...... How could we Hedge positions in the Grains and Softs via using Options ?
Are there Liquid Stocks/Options to Hedge against the Grains ( Corn, Soybeans and Wheat ) and the Softs ( Orange Juice, Sugar, Cocoa, Coffee, etc. ) that you recommend ?

Thank you again
More...
%%
NOT a prediction; SPY options are real liquid.
I buy most of my wheat....., well never mind.Want to know how to NEVER lose money in wheat??
Actually i got this idea out of my library - trading book-wheat system for sale $500.The trading book system ''says NEVER buy wheat againLOL-LOL'' Frankly that system is worth much more than $500, but its his system LOL.Have to get back to my oil candle charts,SPY charts
 
md2324 said:
Handle123,
Do you mean to buy ATM options of the SPY or SPX when Long the ES ?

GDX ATM options for GOLD

USO for Crude Oil

UNG for Natural Gas


My main question though is ...... How could we Hedge positions in the Grains and Softs via using Options ?
Are there Liquid Stocks/Options to Hedge against the Grains ( Corn, Soybeans and Wheat ) and the Softs ( Orange Juice, Sugar, Cocoa, Coffee, etc. ) that you recommend ?

Thank you again
More...

Buy ES options, Gold options, Crude Oil Options, etc
Go to www.barchart.com Futures then Futures Markets then under "Links" way right looks like headphones will give you options on futures.

<<<Are there Liquid Stocks/Options to Hedge against the Grains ( Corn, Soybeans and Wheat ) and the Softs ( Orange Juice, Sugar, Cocoa, Coffee, etc. ) that you recommend ?>>

Yes, they are there.

http://futures.tradingcharts.com/tafm/tafm11.html
http://www.cmegroup.com/education/options-on-futures-brochure.html
http://www.investopedia.com/articles/optioninvestor/02/061302.asp
 

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murray t turtle said:
%%
NOT a prediction; SPY options are real liquid.
I buy most of my wheat....., well never mind.Want to know how to NEVER lose money in wheat??
Actually i got this idea out of my library - trading book-wheat system for sale $500.The trading book system ''says NEVER buy wheat againLOL-LOL'' Frankly that system is worth much more than $500, but its his system LOL.Have to get back to my oil candle charts,SPY charts
More...

You been around a few years, remember that one book-something about "Never Lose In Commodities"? He had hit like near 200 trades without a lose, but it was like a wicked trading plan on averaging down, maybe that worked well during the Carter years when most grain and meats were contained pricing, but can you imagine buying gold in 1980 at $800 then having to keep rolling over till it got to $805, in 2007 LOL but if you did, that would have been winning trading as well.
 
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