MARICO SHORTI have a negative bias on the FMCG sector this week. Marico has been in a strong uptrend on the 15 min chart, using the 200 Bollinger Bands, its visible how the price is moving very very close to the upper end of the Bollinger range.
The strategy is to capture the decline from the current highs. The previous high is the first target at 351 and second target at 346 slightly below it.
Short at CMP.
SL:360.85
T1:351
T2:346.
Risk Reward - 2.7:1
Bollingerbandstrategy
SHORT: Lower BB Squeeze on 4h, likely breakdownCreating another short position here after 6k target reached. 5500 target. Very strong 4h bottom BB band breakout through the tightened squeeze. Breakdown on the 1D chart looks imminent with 5500 lower BB. Confirmation of the breakdown trend shown through low RSI, MFI, and volume levels. 1W outlook: lower BB hits 5100. Also compare also with ichimoku cloud. More than enough confirmation of the downtrend.
How to Use Bollinger Bands to Best Capture Trading OpportunitiesPresented by John Bollinger at the Online Traders Summit on 1/27/18.
www.youtube.com
Bollinger Bands are so popular worldwide because they tell traders whether prices are high or low on a relative basis; vital information for profitable investing.
During his session, the creator of Bollinger Bands will introduce important Bollinger Band indicators and review their use in pattern recognition and trading systems.
What you can expect to learn:
What Bollinger Bands tell you
Using %b and BandWidth with Bollinger Bands
The Bollinger Band Squeeze and Bulge
Selecting indicators for confirmation
Pattern Recognition with Bollinger
Bands Identify set-ups with good reward/risk characteristics
BUY/Learn : Bollinger Bands Squeeze BreakoutBollinger Bands Squeeze is a powerful yet simple trade setup. One can identify the Squeeze when bandwidth is at around 6 months low. One can enter the trade when price starts trading out of the band. Mostly this setup rewards the trader nicely as one enter the trade early with small stop loss of one candle/Bar and ride the swing. The stock has given the breakout so one can trade it. Please note that sometimes stock gives a fake breakout just to shake the traders in that case one should reverse the trade and continue with that direction.
Wishing you all Profitable prosperous new year.
Equifax (EFX} DailyIn September this year the credit monitoring company plunged nearly 10% witnessing a collossal 35% drop after it disclosed last Friday a massive data breach, which possibly impacted up to 143 million Americans. The stock's drop has wiped out about $6 billion of its market value in the process. The Equifax breach was not the largest ever, but it was notable for the kind of information that was put at risk.Post that the prices had reached oversold region and then the rebound happened over the past few days have started struggling near the 38.2% Fibonacci retracement of the sharp decline. After rebounding a minimum 1/3 the selling pressure has started emerging and the Bollinger Band has narrowed forming a squeeze leading to a possible decline in the coming days. Hence a short below 107 is a good trade to initiate.Once it emerges updates shall follow.
Learn to Trade -- Bollinger BandsHi,
Squeeze and Expansion is one of the famous ways to trade BB. In the following steps I will try to explain how I trade it.
# Look for a stock in long term uptrend but currently in correction. The 'Long Term' depends on time horizon of trading. For positional trader it could be daily while for intraday traders it could be hourly. So selection of stock would depend upon the trading style.
# Once the stock is found, jump to a lower time frame. This time frame is 4-6 times lower than the longer time frame taken above.
1) Wait for a strong impulse wave, which usually signals the beginning of an uptrend. One may see divergence on any momentum indicator for confirming change in trend. Many traders miss this wave due to many doubts but that's OK. The impulse is the first indication that there will be follow through.
# Normally such huge moves are associated with very wide separation in BBs. The upper band is moving Northward while the lower Southward.
2) Finally at the end of impulse the lower BB starts bending Northwards, and correction begins. The extent of correction depends on buyer-seller equilibrium but I am interested in looking for price action below the 20MA BB line. For further confirmation I use 55 EMA, whenever possible, means action near and preferably below this EMA decides the trade.
# An A-B-C type correction is preferred.
3) Upto this stage strong squeeze in BB can be observed.
4) Then wait for the price to move back above the MA or/and EMA as shown in this example. Price may take support at MAs, however strong spikes below MAs may be followed by closing candles above MAs which show strength.
# These spikes are a great for placing Stop orders.
5) Entry would be triggered as the price progresses beyond the upper BB, preferably also breaking a range or trendline, confirmed by above average volume.
# Another important confirmation is BB expansion on this break.
6) Take profit at a previous resistance/swing high or a Fib. level.
7,8) One may find another buying opportunity as the price pulls back, preferably near MAs.
# Price action near MAs would be the key for entry, see example. Stop could be placed below swing low.
9) After this late entry, the target would be previous high or one may exit as per any other exit strategy.
Although all this looks bookish but it actually happened on this stock and I also published the same idea. After all whatever is written in books is learned from experience.
Filtering a stock to apply a strategy is the hardest part but you know, there is no easy money in trading business. So good luck.
Trade safe and respect every trading strategy.
Hit like if you think this information is useful.
Regards
Bravetotrade
NIFTY gartley/ harmonic pattern Lets see if a reversal signal is generated.
Nifty has filled the last two recent gaps, so I am expecting it to fill this one too if the pattern becomes valid.
BB has tightened up, a breakdown could add to confirmation. (Median 20 MA acting as support for now at 9602-9604.
Bollinger Band Reversal Short TradeThe price movement are being captured beautifully by Bollinger Band and one can observe that whenever it has traded out of the band, it has given a nice opportunity to trade the reversal. We can apply the same method and short the stock by providing appropriate stop loss and look for the target of middle/lower band.