Bollingerbands intraday strategy

[apmf]

The same strat' is explained here in greater detail by 30XTCi:
http://www.trade2win.com/boards/forex-strategies-systems/33407-can-anyone-recommend-strategy.html
It does have merit but, like all indicator based strategies, to enter trades blindly because price has hit or crossed a line without any real understanding of what is going on, is a recipe for disaster. As misterboy points out, this won't work in a trending market but, equally important to understand is that Bollinger Bands are based on volatility. Current market conditions fluctuate wildly from low volatility through to unprecedented volatility (usually as a result of news). Therefore, anyone wanting to employ this strategy in the current market is advised to apply extreme caution - even more so than usual.
Just my 2p worth.
Tim.

Hey Tim, its been a long time and I was following this strategy for all these time period.. what I have realized is the best setups happens during a high volatility period when prices moves in zig- zag touching the 3rd deviation down and bottom and usually the bands are having huge width, I avoid when bands are contracting usually a signal for volatility breakout / trend change. But during a period of trending phase prices hardly touches the 3rd deviation at all so no signal. As this strategy is more like scalping so spread cost eats most of the profit as I dont have account with direct market access broker..
So what I am doing now is only take those trades on 15min TF which touches the 3rd deviation upper band in case of downtrend and lowerband in case of uptrend by confirming the direction of trend on a higher TF 1hr&4hr. would be a bonus if there is a price action setup(pinbar/bu/beOB) on the touch of bands. My exit strategy is not going to be the touch of 5ema/lwma as I have realized that it doesnot really works on a long way as I go broke taking small profits when one single trade can wipe out many of my profits and again tightening my stoploss doesnot really works. I will wait untill a new LH on a downtrend on HH is formed to trail my stops..
Lets hope it works.Any advice/suggestions/criticism will be appreciated. I am expecting some of the legends will come over and would suggest to stop using an indicator and focus just on prices which tells the whole story but let me tell you, I have tried it not that hard but didn't get any success maybe beacuse I am not that proficient, I know eventually I will/may be just following the priceaction only but dont really have an answer why I like BB's on my charts.
Cheers!!

 

[Splitlink]

The same strat' is explained here in greater detail by 30XTCi:
http://www.trade2win.com/boards/forex-strategies-systems/33407-can-anyone-recommend-strategy.html
It does have merit but, like all indicator based strategies, to enter trades blindly because price has hit or crossed a line without any real understanding of what is going on, is a recipe for disaster. As misterboy points out, this won't work in a trending market but, equally important to understand is that Bollinger Bands are based on volatility. Current market conditions fluctuate wildly from low volatility through to unprecedented volatility (usually as a result of news). Therefore, anyone wanting to employ this strategy in the current market is advised to apply extreme caution - even more so than usual.
Just my 2p worth.
Tim.

Bollinger Bands have been the indicator that has interested me above all others. There is a lot to be said for the reversing strategy, when the channel is hit. The problem with all these indicators is, though, what average do you use?

The danger is that a BB can, apart from being a very profitble reversing point, also indicate the beginning of a new trend, so they have to be cut ruthlessly and reversed at times.

Those who use indicators are, precisely, the ones who are loath to do that. They should reverse and they do not because they cannot believe that their indicator can be wrong. That is one of the dangers of BBs.

 

[apmf]

Bollinger Bands have been the indicator that has interested me above all others. There is a lot to be said for the reversing strategy, when the channel is hit. The problem with all these indicators is, though, what average do you use?

The danger is that a BB can, apart from being a very profitble reversing point, also indicate the beginning of a new trend, so they have to be cut ruthlessly and reversed at times.

Those who use indicators are, precisely, the ones who are loath to do that. They should reverse and they do not because they cannot believe that their indicator can be wrong. That is one of the dangers of BBs.

I agree, when BB contracts from the normal width that is period when prices hardly move because of low volatility but when it breaks out normally there is a huge false spike and then it moves in the upper /lower trend in a channel mostly without even touching the moving average forming a support/resistance. I tend to stay away when I see that happenning. BTW I am using 22 period ema with 3 standard deviation.