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Any Bollinger Band Fans?

  • #1
  • First Post: Jul 2, 2008 2:45pm Jul 2, 2008 2:45pm
I am trying to develop a strategy using BB and wants to know how people uses it.Does any use BB exclusively for trading ? If yes then what setting you use ? What other indicators you use with BB to decide entry/exit ? Any good material or strategy on BB is appreciated.
  • #2
  • Jul 2, 2008 2:54pm Jul 2, 2008 2:54pm
I tried to use default settings but it seems its not working very well. Any expert advice is welcome.
  • #3
  • Jul 2, 2008 3:16pm Jul 2, 2008 3:16pm
may be it`s better to try this ........ 5 min chart add BB (standart settings) also kettler channels (standart) and when BB go in kettler channel this is clue that soon will have a break out ) hope this help rest is on you ....
  • #4
  • Jul 2, 2008 3:42pm Jul 2, 2008 3:42pm
Thanks for your reply. Problem is this breakout occurs very few times. I was looking for strategy like 1-2-3 formation with another indicator cofirming entry and exit points.
  • #5
  • Jul 2, 2008 4:27pm Jul 2, 2008 4:27pm
This is how I trade Bollinger. I'm showing a really good day for this system on EUR/USD M15, yesterday when it was ranging. This method works best when ranging and other rules apply when it is trending. Rules are as follows, and I bend them on occasion. Wait for candle to penetrate outer band, then look for color change in next candles, green to red, or vice versa. If Stochs are also colored and turning then it's a valid setup, providing price is not in a strong trend. RSI over bought or sold is a plus for me also. I also look for support and resistance in these areas. If S/R is there, I may take a trade earlly, on 1st close outside the band. Taking Profits depends on momentum of price action. If the candles shoot right through the middle band then I look to take profit on a touch of the opposite band... or better yet, 1st close outside the opposite band... if it stalls at the middle band, I take at least partial profits and set my SL to break even. I rarely use stop losses otherwise, and instead try to get in at a better price, as seen on the chart where you have 2 signals side by side. After determining that price has started trending, and broken out of the range, I either wait it out, or try to get into the direction of the trend by entering on a retrace to the 10 ema, or middle band of bollinger, which is 20 ma. This is better when that area is also new support or resistance I always am aware when scalping M5 or M15, where the H1 and H4 are in relation to the bands, etc. If the H1 is on the top band and over bought, I only look for short setups on the lower time frames, and vice versa. I have done very well using this sytem, but it requires different rules at different times and a good understanding of different types of price action. I use this method on EU, UJ, U/CH, AU, and more carefully on EJ and GU

For a better understanding of Bollinger bands in general, www.bollingerbands.com

Good Luck
Attached Image (click to enlarge)
Click to Enlarge Name: EU Bollinger.jpg Size: 149 KB
  • #6
  • Jul 2, 2008 5:09pm Jul 2, 2008 5:09pm
Quoting dbeach777
This is how I trade Bollinger. I'm showing a really good day for this system on EUR/USD M15, yesterday when it was ranging. This method works best when ranging and other rules apply when it is trending. Rules are as follows, and I bend them on occasion. Wait for candle to penetrate outer band, then look for color change in next candles, green to red, or vice versa. If Stochs are also colored and turning then it's a valid setup, providing price is not in a strong trend. RSI over bought or sold is a plus for me also. I also look for support and resistance in these areas. If S/R is there, I may take a trade earlly, on 1st close outside the band. Taking Profits depends on momentum of price action. If the candles shoot right through the middle band then I look to take profit on a touch of the opposite band... or better yet, 1st close outside the opposite band... if it stalls at the middle band, I take at least partial profits and set my SL to break even. I rarely use stop losses otherwise, and instead try to get in at a better price, as seen on the chart where you have 2 signals side by side. After determining that price has started trending, and broken out of the range, I either wait it out, or try to get into the direction of the trend by entering on a retrace to the 10 ema, or middle band of bollinger, which is 20 ma. This is better when that area is also new support or resistance I always am aware when scalping M5 or M15, where the H1 and H4 are in relation to the bands, etc. If the H1 is on the top band and over bought, I only look for short setups on the lower time frames, and vice versa. I have done very well using this sytem, but it requires different rules at different times and a good understanding of different types of price action. I use this method on EU, UJ, U/CH, AU, and more carefully on EJ and GU

For a better understanding of Bollinger bands in general, www.bollingerbands.com

Good Luck

Thanks a million dbeach for such a generous and awesome explanation. I really appreciate it.
  • #7
  • Jul 2, 2008 5:31pm Jul 2, 2008 5:31pm
dbeach, Sorry I forgot ask you one question. Hope you don't mind anwering it. What settings you use for BB ? Do you use default settings or your own settings ? I don't know for scalping default settings are good or not. Any suggestion?
  • #8
  • Jul 2, 2008 9:50pm Jul 2, 2008 9:50pm
I use default setting of 20 on bollinger, but as you can see, I also have the ema 10 which can be useful as price draws back quickly to 10. Some people prefer 10 setting, but with that I get more signals, but more false signals too.. I am happy with the default settings





Quoting leo9
dbeach, Sorry I forgot ask you one question. Hope you don't mind anwering it. What settings you use for BB ? Do you use default settings or your own settings ? I don't know for scalping default settings are good or not. Any suggestion?
  • #9
  • Jul 4, 2008 12:23pm Jul 4, 2008 12:23pm
i use 20,2 on the daily. double up as trade goes my way.
  • #10
  • Jul 4, 2008 12:29pm Jul 4, 2008 12:29pm
forgot to mention specifics..............find trend......use BBs on daily to buy/sell retracements. i use that one indicator only. remember, what you do after you get in is far,far more important than what you do to get in. adding to winners is what gets that expectancy on steriods.........................
  • #11
  • Jul 6, 2008 5:40pm Jul 6, 2008 5:40pm
dbeach777,

What settings do you have on your stoch and rsi. I tried to use the settings that I see in your chart but it doesn't look anything like your set up.

Thanks.
It's All About Attitude ...
  • #12
  • Jul 6, 2008 7:49pm Jul 6, 2008 7:49pm
Hi Billser,

The stoch setting is 15,3,2 But I changed the signal line color to "none" which just gives one line. I then changed the line to a dotted line. The Rsi is default 14.

Both are custom color/alert indicators.

I will attach the indicators and my template.




Quoting Billser
dbeach777,

What settings do you have on your stoch and rsi. I tried to use the settings that I see in your chart but it doesn't look anything like your set up.

Thanks.
Attached File(s)
File Type: ex4 Color RSI v1.01.ex4   11 KB | 1,867 downloads
File Type: mq4 Color RSI v1.01.mq4   11 KB | 2,094 downloads
File Type: ex4 ColorStochastics_blocks_v1.02.ex4   13 KB | 1,645 downloads
File Type: mq4 ColorStochastics_blocks_v1.02.mq4   12 KB | 1,822 downloads
File Type: tpl dinapoli 1.tpl   7 KB | 1,553 downloads
  • #13
  • Jul 6, 2008 8:13pm Jul 6, 2008 8:13pm
dbeach777,

Thank you very much......I'll send you the check next week...lol

Quoting dbeach777
Hi Billser,

The stoch setting is 15,3,2 But I changed the signal line color to "none" which just gives one line. I then changed the line to a dotted line. The Rsi is default 14.

Both are custom color/alert indicators.

I will attach the indicators and my template.
It's All About Attitude ...
  • #14
  • Jul 7, 2008 10:47am Jul 7, 2008 10:47am
Quoting dbeach777
Hi Billser,

The stoch setting is 15,3,2 But I changed the signal line color to "none" which just gives one line. I then changed the line to a dotted line. The Rsi is default 14.

Both are custom color/alert indicators.

I will attach the indicators and my template.
I am new to bollinger band and i prefer trading BB in ranging market. Thanks for sharing your custom indicators.. Best Regards
  • #15
  • Jul 9, 2008 12:20am Jul 9, 2008 12:20am
I read John Bollingers book and he talks about using mainly volume indicators.

In your experience and opinion what do you think is the best indicator that compliments the Bollinger Bands and what settings do you use with that indicator.

Many thanks for your imput.

Billser
It's All About Attitude ...
  • #16
  • Jul 9, 2008 8:44am Jul 9, 2008 8:44am
Hey Billser, I'm really not that much of an expert on the BB and have not read the book. Would you recommend it? I used to hate the way the bands looked on the chart, so didnt use em, but have discovered that I do like them, and I eliminate a lot of other indicators for a cleaner look, although I do have a completely different template that I like to look at on occasaion with all the pivot zones, daily support and resitance levels, and several moving averages. The settings I like the best are the ones I showed before, on stochastics and rsi. It's not fool proof when it starts trending but good when its ranging.

Do you have a preferred method of trading?


Quoting Billser
I read John Bollingers book and he talks about using mainly volume indicators.

In your experience and opinion what do you think is the best indicator that compliments the Bollinger Bands and what settings do you use with that indicator.

Many thanks for your imput.

Billser
  • #17
  • Jul 9, 2008 9:09am Jul 9, 2008 9:09am
4 hour chart

standard BB settings

wait for candle to close outside band - enter when candle closes back inside BB.

SL out side of the bands

Target middle band (20 MA)

Used this system effectively for a while when i first started trading and it was good because everything, entry, target, and stop loss are very black and white. Pretty hard to make a mistake unless you get impatient and close the trade too early.

Enjoy.
Time hides Nothing
  • #18
  • Jul 9, 2008 9:37am Jul 9, 2008 9:37am
Thanks Cindy,

I looked at a few charts on the H4 and yes, sometimes it works, but often, it doesn't, so to trade the 4 hour I'd use discretion rather then the black and white approach you mentioned. Often price moves back to the 10 moving average, not the 20, and then goes on to make new highs/lows. also, often when it closes outside the bands, the next close is already at the middle bands... no trades there, so I use discretion all around with the bands, Is the next candle a small inside bar, doji, Bullish/Bearish engulfing, etc? I prefer the 15 minute chart as I get setups every day and it's quite common for me to pick up about 100 pips a day that way, just trading M5 and M15, while keeping in mind the bigger picture of where the bands are on higher time frames. even when entering trades off H4 setups, I enter on a signal from smaller time frames as well. Trading bollinger bands for me is very discretionary, not black and white. I'd be interested to check out the volume indicators with the Bands as Billser mentioned.

Do you still trade BB Cindy?






Quoting CindyXXXX
4 hour chart

standard BB settings

wait for candle to close outside band - enter when candle closes back inside BB.

SL out side of the bands

Target middle band (20 MA)

Used this system effectively for a while when i first started trading and it was good because everything, entry, target, and stop loss are very black and white. Pretty hard to make a mistake unless you get impatient and close the trade too early.

Enjoy.
  • #19
  • Jul 9, 2008 10:16am Jul 9, 2008 10:16am
No mate not any more got fed up with the 4 hour charts and waiting all day for a set up but didn't want to go under th 4hr TF for that method.

Also when you get abig break out with that method it can create a lot of false entries.

I did back test it on every pair over a 3 month period before going live and was pretty confident when i started using it live. I also made PIPS but got very frustrated when I'd wait so long for a set up and then it turn into a loser and have to start all over again lol...

I might have a good look at your method it sounds promising. I currently don't use BB bands in any of my methods but always like to learn new ones

cheers
Time hides Nothing
  • #20
  • Sep 4, 2008 10:41am Sep 4, 2008 10:41am
Just want to bring this thread back to the surface
by saying that I've just read Bollinger On Bollinger Bands
and thought it was just great.
Definitely worth reading!
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD 9_4_2008 (1 Range).jpg Size: 103 KB
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