Bollinger Bands
- Thread starter Spxdes
- Start date
Didnt I already point out that BBs are problematic in defining strict entry and exits?..However they do add significant value in the way they impart high and low volatility transitions in price action more clearly... and we all know low volatility (Pinch) is superseded by a move or breakout in many markets..
I think thats valuable.. it increases confidence.. my trading success improved substantially on using them whilst learning through discretionary trades.... Granted ..though mechanically.. theres a problem.. but optioncoach had some interesting ideas no?
boller bands haven't been proven to work. They are innefective tool for any TA. I don't recommend them at all.
BB are bullshit...
they derive their value from past price action and have no predictive value.....
why not use MACD crossovers instead?
at least you can look at the mechanical crossover to make a decision....
since the market is hot money gunning one sector at a time, they're looking at the same charts everyone else is....
you may miss the first 20% of the move but you can capture the next 50%
they derive their value from past price action and have no predictive value.....
why not use MACD crossovers instead?
at least you can look at the mechanical crossover to make a decision....
since the market is hot money gunning one sector at a time, they're looking at the same charts everyone else is....
you may miss the first 20% of the move but you can capture the next 50%
I've been having some fun with BBs too. I'm using them along with MACD in two timeframes.
In the longer chart (30 minutes) I look for a somewhat mild trend. For a long trend, MACD is positive but not overly so, and the price is trading slightly above the middle BB.
Then I switch to the 3 minute chart and look for negative MACD and a red candle touching the middle or lower BB. At that point I go LONG.
To me this indicates that the retracement is just about over and the trend is about to resume. I use a fairly tight trailing stop to cut my losses and let my profits run on the occasion that there's a quick rise/plunge.
In the longer chart (30 minutes) I look for a somewhat mild trend. For a long trend, MACD is positive but not overly so, and the price is trading slightly above the middle BB.
Then I switch to the 3 minute chart and look for negative MACD and a red candle touching the middle or lower BB. At that point I go LONG.
To me this indicates that the retracement is just about over and the trend is about to resume. I use a fairly tight trailing stop to cut my losses and let my profits run on the occasion that there's a quick rise/plunge.