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Bollinger Band for 5mins trading

  • #1
  • First Post: Aug 11, 2007 7:19am Aug 11, 2007 7:19am
Hi,

May I know anyone use bollinger band for trading???

What TF do you use? 1hour, 30M, 15M or 5M?

What other indicators you used in conjunction???

Regards
  • #2
  • Aug 13, 2007 3:35am Aug 13, 2007 3:35am
Check out this 5min bollinger method here:

http://www.trading-naked.com/JoeRossGimmeeBarSetup.htm

The first time I tried using it I had 10 winning trades in a row. So I know this method can work... although after that it was more unpredictable, it can be risky picking tops and bottoms in a ranging market because if the price breaks out of the range it can knock out all your little 2-5 pip profits in one trade. But if you can control your losses and know how to identify ideal ranging situations it can be pretty good.
another thing you do with that 5min system above is check the Bollinger Bands on other time frames as well, like the 30min and the hourly, to see if they confirm the trade.

I also bought mr Bollinger's book "Bollinger on Bollinger Bands" but I haven't read it yet. It seems like a simple and useful tool though.
  • #3
  • Aug 13, 2007 7:14am Aug 13, 2007 7:14am
Quoting derelict
Check out this 5min bollinger method here:

http://www.trading-naked.com/JoeRossGimmeeBarSetup.htm

The first time I tried using it I had 10 winning trades in a row. So I know this method can work... although after that it was more unpredictable, it can be risky picking tops and bottoms in a ranging market because if the price breaks out of the range it can knock out all your little 2-5 pip profits in one trade. But if you can control your losses and know how to identify ideal ranging situations it can be pretty good.
another thing you do with that 5min system above is check the Bollinger Bands on other time frames as well, like the 30min and the hourly, to see if they confirm the trade.

I also bought mr Bollinger's book "Bollinger on Bollinger Bands" but I haven't read it yet. It seems like a simple and useful tool though.
Hi,

Thanks for the information, from what I understand the BB is good when the market is ranging. Therefore, when the market is trendy, this method may not work. What is your opinion??? What other indicators did you use besides the BB???

Thanks again for your information.

Regards
  • #4
  • Aug 13, 2007 7:53am Aug 13, 2007 7:53am
how can i know that ranging market has turned trending?

which indicator can i use

thank
  • #5
  • Aug 13, 2007 5:33pm Aug 13, 2007 5:33pm
Certain pairs tend to range more than others... EURUSD for example... in fact EURUSD is trading in a 10 pip range right now, this is an example situation. When it hits the bar at 1.3614 and starts to turn around, you sell and then exit at the middle band (conservative) or near the lower band (aggressive). Then try to do the same thing when it bounces off the lower band.

Pairs are also much more likely to enter a range during slow sessions, often in Asian and Australian sessions, sometimes end of US. Also sometimes after a big move the price will settle in a range for a while for the market to rest and determine its next direction.

I don't think Bollinger bands are useless during trending market. You can't really trade off them but they can give you a visual idea of trend direction and strength, they show you where most of the price action is going to be contained, and they also act as dynamic support and resistance lines.

I don't really use any indicators other than Bollinger Bands. Fibs, support and resistance, and price action... and actually right now I don't trade this way either, I am practicing the Linuxtroll rainbow which you can find in the Forex Discussion forum... this is a countertrend method and I am trying to learn to trade with the trend.
  • #6
  • Aug 13, 2007 6:30pm Aug 13, 2007 6:30pm
Hi, I used a similar method to scalp some time ago, (some times I still use it in the Sydney and Tokio sesion). What I recommend you to do:

 

  1. Place a limit order some pips above/short - below/long the bollinger bands, if the price doesn't hit the order be patient, maybe the next time will do. The number of pips depends on the pair, but I can say half of the spread you'll pay it's a good number.
  2. Close the position some pips before the price reach the oposite bollinger band.
  3. Avoid scalping when news concerning the pair are coming (1 hour or nearer).

And finally I think it's the most important point, identify the main trend, open a chart of 1 hour and other of 4 hours, the price usually ranges but in one direction, at least slightly, so, if you see the martket is ranging in bullish direction, place only the long orders, and if the market is bearish place only the short orders.

Try it on a demo before go real, it requires practice and knowledge of the typical movements of the pair, try to stick just to one or two pairs so you really notice how they are used to move.

Hope this helps, good luck

Ado Whether you believe you can do a thing or not, you are right.
  • #7
  • Edited 7:17pm Aug 13, 2007 7:00pm | Edited 7:17pm
I've been using BBands for a couple of months now. The key to being able to make it through the ranging times is to trade with longer length to your band.

In the 5 min I'm currently using 285 length with a deviation of 1. I've found this to be very profitable. I've not tested it on other pairs, but this pair has been good to me.

The longer your length the more true your trades will run at least to a certain extent. The basic 20 with a deviation of 2 can or might hurt your account in the long run.

Just my 2 cents.
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  • #8
  • Aug 14, 2007 5:32am Aug 14, 2007 5:32am
Quoting yezbick
I've been using BBands for a couple of months now. The key to being able to make it through the ranging times is to trade with longer length to your band.

In the 5 min I'm currently using 285 length with a deviation of 1. I've found this to be very profitable. I've not tested it on other pairs, but this pair has been good to me.

The longer your length the more true your trades will run at least to a certain extent. The basic 20 with a deviation of 2 can or might hurt your account in the long run.

Just my 2 cents.

Can you please explain this a little more. I dont get it, what are the red and blue lines for?

thanks
  • #9
  • Aug 14, 2007 7:08am Aug 14, 2007 7:08am
Quoting Peacelover
Can you please explain this a little more. I dont get it, what are the red and blue lines for?

thanks

The red and blue lines are from another indicator called bbstop. It shows a visual of when the price has broken the band. Also gives a good place for a stop loss and reverse.

I've attached the indicator. To set it up use the same settings as you do your standard bands. I've also attached a quick template that I've thrown together and use on the M5 for BBands as shown in my previous post.
Attached File(s)
File Type: ex4 BBands_Stop_v1.ex4   7 KB | 1,262 downloads
File Type: mq4 BBands_Stop_v1.mq4   6 KB | 1,210 downloads
File Type: ex4 BBands_Stop_v1_with_alert.ex4   7 KB | 1,133 downloads
File Type: mq4 BBands_Stop_v1_with_alert.mq4   6 KB | 1,325 downloads
File Type: tpl bbeatrading ea gbpjpy m5 setting.tpl   1 KB | 1,268 downloads
  • #10
  • Edited 7:58am Aug 14, 2007 7:47am | Edited 7:58am
Quoting yezbick
The red and blue lines are from another indicator called bbstop. It shows a visual of when the price has broken the band. Also gives a good place for a stop loss and reverse.

I've attached the indicator. To set it up use the same settings as you do your standard bands. I've also attached a quick template that I've thrown together and use on the M5 for BBands as shown in my previous post.
Hi,

Do you mean set the BB to 285 using TF of 5M? If so, can you explain why 285 with deviation 1? I am curious to learn.

Also, what are the entry and exit criteria for the system, appreciate if you could elaborate more on that.

Cheers
  • #11
  • Aug 14, 2007 10:38am Aug 14, 2007 10:38am
Quoting yyc196
Hi,

Do you mean set the BB to 285 using TF of 5M? If so, can you explain why 285 with deviation 1? I am curious to learn.

Also, what are the entry and exit criteria for the system, appreciate if you could elaborate more on that.

Cheers
When using the BB on GBPJPY the shorter the timeframe the greater your chance of getting hurt in a ranging market. I've been thoroughly testing the bb to see what is the best parameters for the GJ and found 285 length for the 5M to best the most optimal settings.

As for the entry and exit strategy. You can use the outer boundries of your bb as entry and exit.

ex. Upper bb is at 239.00 and lower is at 238.50. When the current price goes through the lower band @ 238.50 you take out a sell. After taking out a sell place youi stop and a buy stop at the upper band line and keep adjusting them as the bb moves. The same is also true with the upper band.

When it moves back north through the upper band you will have adjusted your sl and buy stop to the last point of the bb and the process will start over. Now you will have a buy with a sell stop at the lower band which will be adjusted accordingly until it goes through the lower band and starts over again.

As for the deviation of 1, I chose this because I wanted a tighter spread between the upper and lower bands. Which results in a smaller sl and reverse, leaving me with a smaller loss potential. * Basically I wanted a deviation of 2 with smaller loss potential. So I compensated by stretching the length of the band, which results in the equivelent of deviation of 2 for a smaller length with the smaller loss potential. Also you will notice as you lengthen your bb you will be able to go through the ranging times better and still take advantage of the trends.

It generally takes about 12-14 hours for a transition to complete itself. Sometimes it takes longer. I've personally seen up to 5 days for it to settle out.

I've tried the bb on other pairs and found the GJ to be the best as it has been trending a lot more than other pairs this year.
  • #12
  • Aug 14, 2007 11:11am Aug 14, 2007 11:11am
Quoting yezbick
When using the BB on GBPJPY the shorter the timeframe the greater your chance of getting hurt in a ranging market. I've been thoroughly testing the bb to see what is the best parameters for the GJ and found 285 length for the 5M to best the most optimal settings.

As for the entry and exit strategy. You can use the outer boundries of your bb as entry and exit.

ex. Upper bb is at 239.00 and lower is at 238.50. When the current price goes through the lower band @ 238.50 you take out a sell. After taking out a sell place youi stop and a buy stop at the upper band line and keep adjusting them as the bb moves. The same is also true with the upper band.

When it moves back north through the upper band you will have adjusted your sl and buy stop to the last point of the bb and the process will start over. Now you will have a buy with a sell stop at the lower band which will be adjusted accordingly until it goes through the lower band and starts over again.

As for the deviation of 1, I chose this because I wanted a tighter spread between the upper and lower bands. Which results in a smaller sl and reverse, leaving me with a smaller loss potential. * Basically I wanted a deviation of 2 with smaller loss potential. So I compensated by stretching the length of the band, which results in the equivelent of deviation of 2 for a smaller length with the smaller loss potential. Also you will notice as you lengthen your bb you will be able to go through the ranging times better and still take advantage of the trends.

It generally takes about 12-14 hours for a transition to complete itself. Sometimes it takes longer. I've personally seen up to 5 days for it to settle out.

I've tried the bb on other pairs and found the GJ to be the best as it has been trending a lot more than other pairs this year.

Thanks for your explanation, since I am a newbie I am currently demo on the 4 majors currencies. Do you think I can use it on Cable??? Also, it since that you did not use the other indicator (the one with red and blue line).

Good explanartion and thanks again.

Regards
  • #13
  • Aug 14, 2007 10:38pm Aug 14, 2007 10:38pm
Quoting yyc196
Thanks for your explanation, since I am a newbie I am currently demo on the 4 majors currencies. Do you think I can use it on Cable??? Also, it since that you did not use the other indicator (the one with red and blue line).

Good explanartion and thanks again.

Regards
I've tested it on other pairs, but the GJ has given substantially better results than the other pairs that I've tested. Tested the GU, EJ, & GC so far.

As for the blue red lines. They are just a visual of when to buy and sell.

Glad to be of help.
  • #14
  • Aug 15, 2007 1:18am Aug 15, 2007 1:18am
Hi,

I wonder if an BB indicator with Multi time frame would help in the 5min chart.

Any comments, just a discussion only.

Regards
  • #15
  • Jan 12, 2019 2:21am Jan 12, 2019 2:21am
hi i want same BBands_Stop_v1.ex4 indicator for mt5 non repaint. if any friend has it post here plz?
  • #16
  • Last Post: May 6, 2025 11:12pm May 6, 2025 11:12pm
Quoting yezbick
{quote} When using the BB on GBPJPY the shorter the timeframe the greater your chance of getting hurt in a ranging market. I've been thoroughly testing the bb to see what is the best parameters for the GJ and found 285 length for the 5M to best the most optimal settings. As for the entry and exit strategy. You can use the outer boundries of your bb as entry and exit. ex. Upper bb is at 239.00 and lower is at 238.50. When the current price goes through the lower band @ 238.50 you take out a sell. After taking out a sell place youi stop and a buy...
I think better using setting Bolinger band in TF 5M by set period 240 simple, dev 1 and 2
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