Bollinger bands

#1 Because the initial move was a failure which resulted in X to pull back, I assume it came up, tested the 20 and rolled over.

#2 I See some consolidation on right at that price level. I think a punch through is obviously to the upside, a continuatio of the trend. I just cant see 56 that strong to stall it. So higher.

#3 I'm looking for this one to roll, test the 20 and more than likely trade back through it to continue the trend down. Or the 20 provides support and it trades through the peak.

Lets see em
 
Quote from osho67:

Can bollinger bands work day trading index futures?What are the drawbacks of this technical tool?

It seems there are not many people here on ET use bollinger bands. There must be some reason

Plese comment and advise. Thanks.
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Bollinger Bands are the most important indicator on a chart and are nearly essential for successful trading. Thank you for your time.--Izzy:)
 
Quote from cashmoney69:

It allows you not feel like you need to chase.

You wont know its an over extension until after the fact. Ya it might be, but then your sitting on your hands and watching as the stock takes off without you with little to no pullback in sight.

When I first started trading i put bb's on everything, but after a while i could never get the hang of it.

For my own amusement im going to post three charts...the stock is unknown. two are on a 5min, and the other is a daily. I cut some of the chart off, right before a major move. I want you to be able to tell me from looking at these, whats the trade at this point?

for those that trade bb's, tell me what to do on these charts, now that price is on the hard right edge :)
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Cool idea!

First one, I wouldn't do anything as this is what i call the middle ground and a favorite hangout for market makers. Second one I wouldn't do anything for the same reasons. Third one is a sell when the next candlestick crosses above the upper bb again.
 
I'll chip in. I'm late to this little thread which is a shame, I love bollinger bands and I could probably trade with them exclusively if I had to.

Here's a little secret: Pay attention to the curvature.

A lot of people get caught up about touches and bounces and all that, it really isn't that big a deal, the curving of the bands is very important.

Remember its a lagging indicator, but that's what makes it so beautiful if you can draw the picture from the curves. ;)

Just a little tidbit.

-troll
 
Quote from Buy1Sell2:

Bollinger Bands are the most important indicator on a chart and are nearly essential for successful trading. Thank you for your time.--Izzy:)
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B1S2, can you please elaborate a bit on how you use them. thanks!
 
I think BB is comprehensive indicator, because u can see the S/R,, volatility, price action in one shot. The BB curve give important signs for the dynamics of the price actions (running or slowing down) too.

Problem is thet hard to implement it in a semi or full automated system.

I would be interested in scaling in formulas and volume dynamics to decrease the loss on false breaks (if break out system used).
 
To me BB works as a great tool in Analysis. A potential breakout of a choppy trade action or a consolidation can be marked with a combination of other tools. U may use a lower SD BB with MFI of a great help
 
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