Bollinger Band Support and Resistance Channels | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

how to combine RSI and bollinger band in one indicator windows? 8 replies

Trading with Bollinger Band and Moving Average indicator 41 replies

Bollinger band TP and SL - help needed 0 replies

How do I shade the area Between a Bollinger Band and its Deviation? 1 reply

Keltner Channels and Bollinger Bands 1 reply

Attachments: Bollinger Band Support and Resistance Channels
Exit Attachments

Bollinger Band Support and Resistance Channels

  • #1
  • First Post: Edited 11:11pm Nov 5, 2008 7:27pm | Edited 11:11pm
My idea is simple. Use Bollinger Bands to create support/resistance levels as well as a pivot point with the median bollingerband line.This allows you to customize the length of trend you want to look at. Keep the BandPeriods all the same but change the deviations. This creates bollinger support/resistance channeled band levels.
ex. -3-2-1 M +1+2+3
You can change the deviations to suit your entry/exit rules. Just an idea i wanted to throw out there. Any comments would be appreciated.
  • #2
  • Nov 5, 2008 9:27pm Nov 5, 2008 9:27pm
Any picture will appreciate
  • #3
  • Edited 10:49pm Nov 5, 2008 9:57pm | Edited 10:49pm
Quoting 4051fx
Any picture will appreciate
I believe it is better if you find bollinger bands that you can change the deviation by 1 decimal point.That way you can have parameters like this: (M is the median bandline)
-3-2.5-2-1.5-1-.5 M +.5+1+1.5+2+2.5+3(Not picture parameters)

.5/-.5 being closest to the median bandline and 3/-3 being the farthest

Here is a picture(Basic idea)
Attached Image


The bands must be layered. This allows you to add as many levels as you need.
  • #4
  • Nov 6, 2008 11:36am Nov 6, 2008 11:36am
Attached Image

Quitting is the only real failure
  • #5
  • Nov 7, 2008 1:04pm Nov 7, 2008 1:04pm
Gives an idea of how you could find signals. They will depend on how the channels are optimized.
D1
Attached Image

H4
Attached Image

If anyone has any comments it would be much appreciated.
Thanks
  • #6
  • Nov 8, 2008 8:38pm Nov 8, 2008 8:38pm
Quoting Kas1
Gives an idea of how you could find signals. They will depend on how the channels are optimized.
D1
Attachment
H4
Attachment
If anyone has any comments it would be much appreciated.
Thanks

What are you hoping to do with all the B-bands?
what do you see them saying to you?
I would say the greatest strenght of tools it that a lot of other people are seeing the same thing not sure this would be the case here?



TEB
  • #7
  • Nov 8, 2008 9:23pm Nov 8, 2008 9:23pm
Quoting TEB63
What are you hoping to do with all the B-bands?
what do you see them saying to you?
I would say the greatest strenght of tools it that a lot of other people are seeing the same thing not sure this would be the case here?



TEB
My idea was to use the different bbands as support/resistance and trade in the direction of the median band angle. If price is above the median band, look to go long. If below median band, look to go short.
If price is below the median band but breaking a support upwards, consider it the end of the move downwards and vice versa. But price can break back into its last channel and resume a move away from median band.Price will never go outside of the outer bands. You could stay away from the trade if you see price breaking into the last 2 channels or risk less.
  • #8
  • Dec 27, 2008 12:34pm Dec 27, 2008 12:34pm
For this strategy I think this resource will be helpful:

http://www.marketinout.com/screens/i...ollinger_bands

It allows you to find a currency pair that currently touched Upper/Lower Band
  • #9
  • Dec 27, 2008 2:38pm Dec 27, 2008 2:38pm
Quoting TEB63
What are you hoping to do with all the B-bands?
what do you see them saying to you?
I would say the greatest strenght of tools it that a lot of other people are seeing the same thing not sure this would be the case here?



TEB
Spot on TEB63, why support and resistance trading strategy is successful above all forms of indicator trading (found out thru experience and blowing 3 live accounts) is that all the big dogs and "puppies" can see it. Unfortunately I cannot see how this can be achieved with your system. However looking to learn.
LISTEN TO MR FUNDAMENTAL AND MR TECHNICAL
  • #10
  • Dec 27, 2008 2:43pm Dec 27, 2008 2:43pm
Some time back, I tried to build up an EA in order to back test the accuracy of this trading system.

I did not have any acceptable results, simply because when the market trends, the upper/lower bands goes once with the price. However, when I tried to buy near the upper band and sell near the lower, I came across some pretty good results (obviously in a trending market)
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #11
  • Dec 28, 2008 12:21pm Dec 28, 2008 12:21pm
Quoting semar
Some time back, I tried to build up an EA in order to back test the accuracy of this trading system.

I did not have any acceptable results, simply because when the market trends, the upper/lower bands goes once with the price. However, when I tried to buy near the upper band and sell near the lower, I came across some pretty good results (obviously in a trending market)
After posting this, I tested it manually for some time and found that it was not able to identify overall trend direction consistently. But it did seem to be able to pinpoint probable destinations and turning points. I think if someone looked into it further you could find another indicator that is more of a cycle/trend identifier to go along with this idea. Directional channels out of bollinger bands does not seem possible to me. Any more ideas out there I would like to here. Thanks
  • #12
  • Mar 30, 2009 11:07am Mar 30, 2009 11:07am
Quoting Kas1
I believe it is better if you find bollinger bands that you can change the deviation by 1 decimal point.That way you can have parameters like this: (M is the median bandline)
-3-2.5-2-1.5-1-.5 M +.5+1+1.5+2+2.5+3(Not picture parameters)

.5/-.5 being closest to the median bandline and 3/-3 being the farthest

Here is a picture(Basic idea)
Attachment

The bands must be layered. This allows you to add as many levels as you need.
in your opinion does price respect thes bands?
  • #13
  • Mar 30, 2009 11:47am Mar 30, 2009 11:47am
i mean what is the trading strategy here?
  • #14
  • Oct 30, 2009 11:03pm Oct 30, 2009 11:03pm
Quoting hypnos63
in your opinion does price respect these bands?
It seems that semar found some kind of strength to the levels presented. To me yes price does have a respect for the outer bands of those levels. However this probably would have to be tweaked depending on how long you want your trades to last for. The amount of bands added will change sensitivity to signals. This is just a basic model for volatility channels. I believe there is a lot of room for improvement.
  • #15
  • Oct 30, 2009 11:46pm Oct 30, 2009 11:46pm
Hello Kas1 and others!

I'll start by saying that I do really like the system, as it is VERY VERY similar to one that I have been testing out for a few months now.

The screen shot will say it all, however, as you go SHORT below the median...In what I've been doing that would be a time to go LONG (In a ranging market obviously)

I do think that you might be able to pick up a few pointers on this type of trading system @ the Nanningbob 60x90 thread.

Even if you choose not to run the EA's, the templates that he gives of the bands are great for this style.

Just a thought...
Attached Image (click to enlarge)
Click to Enlarge Name: nanning example.gif Size: 28 KB
  • #16
  • Nov 1, 2009 1:45am Nov 1, 2009 1:45am
Hello again Kas1!

I see you've been posting some over in 60x90..

I figured that his system would fast-forward a few steps for ya!

Seems like you are happy w/ the nanningbob thread, I believed it would be a great place for you!

Best of luck with your trades from whatever system you decide!
  • #17
  • Nov 1, 2009 7:52am Nov 1, 2009 7:52am
Quoting Mrezoot
Hello again Kas1!

I see you've been posting some over in 60x90..

I figured that his system would fast-forward a few steps for ya!

Seems like you are happy w/ the nanningbob thread, I believed it would be a great place for you!

Best of luck with your trades from whatever system you decide!
Hello,

Thanks for the heads up. It is much appreciated. I was not aware of nanningbob bb system. It is much more in depth then anything I put out on this thread. Good luck to you too!
  • #18
  • Nov 1, 2009 9:45am Nov 1, 2009 9:45am
I've experimented with BB's loved them for ages as they kinda work, but...

1. There entries are generally counter trend, which is bad.
2. They aren't accurate in any kinda useable way to pick tops / bottoms live.


Sorry give up and move on.

I prefer a fixed envelope and use only for exits and to support entrys but never to enter on it's own. ( ie pull backs in trend )
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #19
  • Nov 1, 2009 2:17pm Nov 1, 2009 2:17pm
Quoting Turveyd
I've experimented with BB's loved them for ages as they kinda work, but...

1. There entries are generally counter trend, which is bad.
2. They aren't accurate in any kinda useable way to pick tops / bottoms live.


Sorry give up and move on.

I prefer a fixed envelope and use only for exits and to support entrys but never to enter on it's own. ( ie pull backs in trend )
What do you mean by picking tops and bottoms live? Do you mean staticly? Currently? Just because you could not get it to work well for you, doesn’t mean it doesn’t work period. As for countertrend trades only, you are always trading some kind of counter trend. I think your accuracy would depend on your timing. They are volatility bands so it would make sence to be going long when price is close to or closed above an upperband, or vise versa for short. I think paying attention to how the bands expand and contract is important as well…it signals a increase/decrease in volatility. I would prefer median based bbands.
  • #20
  • Nov 1, 2009 3:02pm Nov 1, 2009 3:02pm
Quoting Kas1
What do you mean by picking tops and bottoms live? Do you mean staticly? Currently? Just because you could not get it to work well for you, doesn’t mean it doesn’t work period. As for countertrend trades only, you are always trading some kind of counter trend. I think your accuracy would depend on your timing. They are volatility bands so it would make sence to be going long when price is close to or closed above an upperband, or vise versa for short. I think paying attention to how the bands expand and contract is important as well…it signals a...

I tried hard, best results are with a averaging down strategy with a 30pip SL on the first trade but I tried and tried for over a year, it's a bad strategy cause it puts you on the wrong side of bigger moves that hurt to often.

After the effect, yes BB's look great, live not so.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
0 traders viewing now