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  • Bollinger Band

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    drupadhyaygunjan
    13 views22 pages
    This document provides a summary of a trading strategy that uses Bollinger Bands and RSI to identify reversal and momentum trade opportunities. It discusses key Bollinger Band concepts like M Tops, W Bottoms, and pinches. The strategy uses a combination of indicators like RSI, stochastics, and Super Trend plotted on a daily chart to determine buy and sell signals. Examples are given showing the strategy applied to different stocks. The strategy is most suitable for range-bound stocks and may not work as well on volatile indexes. The document concludes with a Q&A section.

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    Understand the bollinger bands used in technical analysis

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    This document provides a summary of a trading strategy that uses Bollinger Bands and RSI to identify reversal and momentum trade opportunities. It discusses key Bollinger Band concepts like M Tops, W Bottoms, and pinches. The strategy uses a combination of indicators like RSI, stochastics, and Super Trend plotted on a daily chart to determine buy and sell signals. Examples are given showing the strategy applied to different stocks. The strategy is most suitable for range-bound stocks and may not work as well on volatile indexes. The document concludes with a Q&A section.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views22 pages

    Bollinger Band

    Uploaded by

    drupadhyaygunjan
    This document provides a summary of a trading strategy that uses Bollinger Bands and RSI to identify reversal and momentum trade opportunities. It discusses key Bollinger Band concepts like M Tops, W Bottoms, and pinches. The strategy uses a combination of indicators like RSI, stochastics, and Super Trend plotted on a daily chart to determine buy and sell signals. Examples are given showing the strategy applied to different stocks. The strategy is most suitable for range-bound stocks and may not work as well on volatile indexes. The document concludes with a Q&A section.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 22

    Profitable Trading Plan Using RSI & Bollinger Band- Souradeep Dey

    What we will learn


    • Concept Of Bollinger Band

    • M Top and W Bottom

    • Walking the Bands –using multiple Bollinger bands in a single chart

    • Pinch

    • Turning of Bands

    • BB %B and Bollinger Bands Width

    • Reversal trades

    • Momentum Trades

    • Swing Trading Strategy


    Bollinger Band
    ▪ Inputs
    ▪ Width of bands
    ▪ Slope of bands
    ▪ Time frame
    ▪ Convergence and Divergence
    M Top
    W Bottom
    Walking the band-Hugging the band
    Pinch reversal
    Pinch - continuation
    Pinch Traps
    Turning of Bands - indication of loss of
    momentum
    Reversal Trades – Case Study- Bullish
    Reversal Trade Case Study - Bearish
    Momentum Trade - Case Study Bullish
    Momentum Trade - Case Study Bearish
    Trading Strategy Ingredients (Daily Time Frame)
    ▪ RSI-14
    ▪ Stochastics (55,34,21)
    ▪ Super Trend (10,2)
    ▪ Bollinger Band (20,2)
    ▪ ATR (5)
    Trading Strategy (For Swing Trading in daily
    chart)
    CONDITION FOR SHORTING
    CONDITION FOR BUY

    At the close of candle (Daily) At the close of candle (Daily)


    ▪ RSI should be Above 50 ▪ RSI should be Below 50
    ▪ Price should be Above Super Trend ▪ Price should be Below Super Trend
    ▪ Super-trend should be Below mid-bollinger ▪ Super-trend should be Above mid-
    bollinger
    ▪ Stochastics should be having %K above %D
    ▪ Stochastics should be having %K Below %D
    ▪ Price Low should be Below super trend
    ▪ Price High should be Above super trend
    ▪ Buy in last two minutes with a stop of 1.1
    ATR and Target of 2.2 ATR of the candle ▪ Short in last two minutes with a stop of 1.1
    ATR and Target of 2.2 ATR of the candle
    ▪ Colour of supertrend does not change
    ▪ Colour of supertrend does not change
    Trade Set up Examples –ITC (Range-bound
    stock)
    Trade Set up Examples –Axis Bank (Range-
    bound stock)
    Trade Set up Examples –Tech Mahindra
    (Directional stock)
    Trade Set up Examples – Tata Motors(Volatile
    stock)
    Trade Set up Examples – Nifty (Index- strategy
    fails due to extreme ranged movement)
    Q&A
    THANK YOU

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