Bollinger Bands and Envelopes

Beginner Questions
1

Hi,

I’ve done some research on bollinger bands and envelopes but I’m struggling to find any strategies to use them for intra-day trading. Does anyone have success using them or any feedback on how they can be applied to perhaps a 15 minute chart?

Thanks,

Adam

2

Don’t rely on others, keep trying and learning from your mistakes. I am not trying to be a butt here, but that may be one of the best things you will do. Just my two cents.

3

Hello Adam,

Few years back I tried bollinger bands and never achieved success with it. Keep in mind that it’s really hard to get the high probability signals using one indicator. Try to combine it with others. As far as I know price action is the good thing to apply for any indicator.

Alan

5

Hi Adam,

I have made a system which is quite good at least for me. the basics is that the BB shows the non-trend zone: if it breaks, then the trend is going. You should exercise watching to see wheter the breakout would be valid or not, but after a while it would be easygoing. :slight_smile: So you should use the following parameters: Timeframe: M15
BB: 96,1 - You see 1 day volatility. If you use Metatrader4, then there are additional parameters that you have to add at the ‘levels’ such as +/- 0.67 or 2.58. This is because 0.67 means 50% at Standard deviation, 1 means 67% and 2.58 means 99%. It’s important that 2.58 means mainly TP point, the price can go up to SD 4, beleive me I know…

So you should watch how the price action reacts to the 2 lines… If it holds, then reverse, if breaks then trade that direction. When it is outside the lines and crosses the BB trade based on big trend, if it goes back in to BB and test the BB lines, then trade the counter trend (hopefully this will be the next trend)

Its not an exact thing because it only shows where the bulls/bears have the controll, but when you choose your side wisely, then you can earn big profits. :smiley: I enlcosed a picture of gold to understand its logic. Happy Trading!

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:slight_smile:

6

That’s great thank you! I will set this up on Meta Trader and demo it to see how I get on with it

Cheers

7

You will never know for sure if it works until you have tried it in a live account to see if you and your strategy work together.

8

It works, I use it on a live account. However to really master it, you have to understand the mechanism of BBs. There is a very good site bollingerbandgenius.com where you can understand what kind of BB shapes are and what does that mean to the price.

This strategy’s basic principle is the daily borderline of trending/non-trending area. It works as far as most of the big moves are starting from the borderline levels. I really have to work on it though, cause it is just a guidance, not a rock solid system. I think to really master it you really have to understand the underlying price movements

Here is an eur/jpy chart: as you see the big move was signalled in time, however later the bands are too contracted with a horizontal daily sma (96)(little price change) to use it precisely. This is the nature of the price, you can’t do much against it except using horizontal trendlines.

cheers
wicha

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9

I am glad it works for you. As you stated you need to work on it and no system is 100%. Trading is an art form and not exact science is what my mentor used to tell me and I agree with that.