Trading Strategies

[spyder9000]

Can anyone advise on how to properly use Bollinger Bands?

I short when the security tags the upper band, and buy when it tags the lower band....combining this with stochastics and MACD.

But my results are far from successful...anyone have any success using this indicator?
Care to share?

[spyder9000]

over 200 views and not even one reply?
does anyone find these forums useful?

all the moderators do is move questions around and around....they dont bother answering....my monthly subscription better not be paying their salaries

[JoeKrueger]

My experience is that you cannot simply short at the top band and go long at the lower band. The price can ride these bands for an extended period of time. I sugguest you read John Bollinger's book "Bollinger On Bollinger Bands" for more indepth explanation of his use of the bands. I use the bands as a confirmation tool, but not as a stand alone trading system.

[spyder9000]

Whats up Joe,

Thanks for the reply, much appreciated.
If you don't mind me asking....what are your trading strategies regarding the BB? What other indicator do you use to confirm, stochastics? RSI?

I'm brand new to trading, sometimes it sort of feels like I'm gambling in the market, and most of my strategies are very inconsistent.

Of course, if you don't want to publicly post your strategies, that's fine too...but it sure would be helpful!!!

Thanks.

[shadowfax]

Spyder,

It is very difficult for someone to tell you their strategy - not impossible, but difficult. There are so many factors to consider: risk tolerance, timeframe (5m, 15m, 60m, etc.), day vs. swing trading, goals, etc.

Finding a strategy is not the hard part. The hard part is determining what sort of trader you want to be. So, it is not a very easy thing to do to explain a strategy.

You are really gonna have to go through the pains of finding YOUR strategy. If you are interested, eSignal's Advanced GET is a very good place to start - they have several strategies, and Stochastic trade is pretty good. It is not a Holy Grail - No ONE has a Holy Grail. Plus the support team does a very good job of mentoring and assisting their customers. So, as a beginner, I'd give them a shot.

Just rememer, you have to find out what kind of trader YOU are. The biggest keys are money and risk management.

I hope this helps.

[shadowfax]

Another suggestion - read up on technical analysis and trading in general. In addition to Bollinger, I'd recommend Alexander Elder, Martin Pring for TA, and Trading in the Zone by Mark Douglas.

One thing to consider, always trade in the direction of the trend. Elder recommends determining trend in a higher time zone before entering a trade. This is common advice in many books - so find the trend and trade in that direction. Pring has KST indicator.

Jake Bernstein's Stock Market Strategies that work is also a good beginner book.

There forums have a wealth of info. Do a search and you will find these indicators already programmed for eSignal and best of all, they are free.

Good luck.

[JoeKrueger]

Hi Spyder,

I'm an Advanced GET user. Utilize the Elliott wave strategies and Gann tools. Bollinger Bands provide a picture of the volitility against Elliott wave and Gann angles. I also use the Advanced GET Stochastics indicator and a standard RSI utilizing the techniques written about by John Hayden. His book is "RSI: The Complete Guide".

Shadowfax is right in that you are going to have to go through some pain in determining what is the right fit for you. It has taken me a number of years to arrive at the concepts I use and I'm sure they do not fit for others. Another book to consider is Van Tharp's "Trade Your Way To Financial Freedom". A good resource to help you define a trading plan that includes concepts or strategies to be employed based on whether you're scalping, day trading, swing trading, investing for wealth or whatever. Even with the information provided, you are going to have to go thru some trial and error to find what fits for you.

I would also add that simplicity is best. I have been down the path trying to employ a number of indicators and oscillators all at the same time, looking for all kinds of cross verification, and found a lot of conflicts with the indicators that only confused the pulling of the trigger.

Hope this helps. Good trading!

[spyder9000]

Whats up Joe and Shaddow,

Been out of town and trying to get back to all the people who responded to my posts.

Good info thanks to all.

**NEW QUESTION

Can anyone tell me if they use an EFS script called RSI w/ Bands.
It seems to be pretty good at nailing reversals across all timeframes, although your stops should be set pretty tight to avoid getting run over.

Anyone care to discuss how they use it, in combination with other indicators?
Results with using it?
So far I've only reviewed it with the SPY, going back a few weeks its not too bad.