The Bollinger Bandit Strikes Again

Discussion in 'Index Futures' started by profitseer, Aug 21, 2002.

  1. Bollinger bands bring bad boy bukoo bucks...Baby!

    The secret is, I switched from macd to rsi as a confirming indicator. Well, it's not really a secret. You can go to www.bollingerbands.com and they tell you exactly how to do it.

    I've got a whole box of tools. If I would ever bother to read the directions I suppose I could get most of them working.

    If you're trying this at home, I would start small, like just one contract. Because you start to see some high risk high probability trades when you stare at those bands long enough. And my 2 cents, don't think I would try it on any chart shorter than 3 or longer than 5 min.
     
  2. I often feel as though I am being led through this trading adventure, because so much of my good fortune is the result of malfunction, miscalculation and mistake.

    Like today. Couldn't get my adx, which has been my bread and butter indicator working. So I put up %bb. %bb displays all the chart data of bb in a slightly different format.

    Run that along with rsi and you will see some very bizarre divergence.

    If everything in my life went right, I wouldn't get anywhere.
     
  3. According to some Buddist principles you may be doing the "right" things. I too like using the BBs but with stochastic and CCI. I will look into using them with RSI... what settings are you using? Are you using the divergences on RSI to confirm the movement off the upper and lower bands? Thanks

    ~EC
     
  4. caza, I don't know anything about rsi. I need to ask more questions. But it was %bb that showed the most interesting divergence. For instance, you can watch prices climb right up the bands on the chart, but %bb shows a steady downtrend.

    The best signal so far was higher price but lower peak on rsi and %bb.
     
  5. Hey profitseer...I see where you're saying price is going
    up,but BB% is going down. So, what action do you take
    from there?:)
     
    • bb2.jpg
      File size:
      91.1 KB
      Views:
      507
  6. Why Breakout, I'm surprised you would ask such an elementary question. That is when you start thinking about taking your profit!

    But seriously, the tag on the long side that runs up the band is one of the best moves. That's the one I'm trying to nail.

    If the tag brings the rsi up above 70, then fading the move as the rsi drops back down through 70 has been ok, but lately, fading anything has worked ok.

    But I think, if you get a tag, and then the rsi slowly follows, that might be an inkling that a trend is forming. I don't know.

    That's still the mystery to me. A tag can be a good place to fade or a good place to jump on. But one things for sure. When prices tag the band, something is going to happen.

    I'm supposed to be the one asking the questions around here. You're supposed to be the one with the answers.
     

  7. Really?...lol

    Post some charts buddy...lets take this idea to the max!:D
     
  8. Great chart. Thanks for the posts, guys, that's what this forum is supposed to provide, positive comments that put money in one's pockets.

    Incidently, the continuation pattern, showing the RSI not confirming the short (.45 second) selloff and then the continuation of the price rising along the top of the BB, was not confirmed with the RSI. This shows the falicy of it being in perfect tandem, as these both measure different variables. I have found the BB to be the 2% deviation range of most moves. Whenever a move violates beyond the 2% deviation then its suspect and worthy of fading or profittaking, haven't gotten gutsy enough to fade into these things though.

    what's your thoughts?
     

  9. Thanks...I agree 100 percent. Forums like this give us the
    unique opportunity of having thousands of like- minded
    people put their heads together.

    1 string is weak, but thousands of strings together will
    keep a ship at bay.

    Now, concerning the chart...first of all, I think what you were
    calling the RSI, is actually an indicator called the %BB. Basically,
    when it goes to 100 or higher you're tagging the upper band,
    and when it goes to -100 or lower you're tagging the lower
    band.

    On this new chart, I've included the RSI (the bottom white
    indicator) set at the default 14 periods.

    I've also drawn 2 lines (green) on the %BB and RSI to
    point out a divergence.

    Is this what you're seeing on your chart profitseer?

    Also, the BB is at default 20, 2.
     
    • bb3.jpg
      File size:
      95.4 KB
      Views:
      301
  10. right breakout, the declining %bb is a warning for the bulls, but the rsi needs to go into overbought territory and then come back down.

    The chart is deceptive cause we are looking at that great bull move, and all we are going to get with this crazy system is a move from the upper to lower band. But still, I'd take that all day if I could.

    The rsi was giving me a headache. I have my adx working right today so I am using BB, %bb and adx with moderate success.

    very good signal this am with %bb at 106, pdi and mdi at 14 and adx at 4. Do you think anything can rally from there? I didn't.

    They don't pay me for talking, will see you later.
     
    #10     Aug 23, 2002