{"id":220,"date":"2017-10-12T16:40:53","date_gmt":"2017-10-12T11:10:53","guid":{"rendered":"http:\/\/themenectar.com\/demo\/salient\/?p=84"},"modified":"2018-03-12T12:12:27","modified_gmt":"2018-03-12T06:42:27","slug":"day-trading-with-banknifty-and-bollingers","status":"publish","type":"post","link":"https:\/\/unofficed.com\/theta\/day-trading-with-banknifty-and-bollingers\/","title":{"rendered":"Day trading with Bollingers"},"content":{"rendered":"<p>The discussion happened on yesterday live market on\u00a0<strong>#nse_entropy<\/strong>\u00a0channel in\u00a0<a href=\"http:\/\/unofficed.com\/chat\">our forum<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6136\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-5.png\" alt=\"Day trading Idea\" width=\"958\" height=\"548\" \/><\/p>\n<p>Firstly the discussion started on <a href=\"http:\/\/unofficed.com\/entropy\/\">Entropy<\/a>; it was about combining the Bollinger bands with support and resistance and candlesticks.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6137\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/BankNIFTY-Intraday-Trade.png\" alt=\"BankNIFTY Intraday Trade\" width=\"880\" height=\"521\" \/><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Buy Bank NIFTY futures on the red line with a stop loss at the blue line. Rationale &#8211;<\/strong><\/span><\/p>\n<p><strong>Bollinger Bands<\/strong><\/p>\n<p>It is getting squeezed telling that a major move is coming. Now which side it should be ? or it will be an ongoing consolidation?<\/p>\n<p><strong>DMA<\/strong><\/p>\n<ul>\n<li>Moving average with double exponential is used by all day traders from Dallal street and it is basically people with big money!<\/li>\n<li>So if DMA is crossed; we can witness huge upside, but it will repel the DMA. So that&#8217;s why it is acting as sell on the rise and entering into consolidation.<\/li>\n<\/ul>\n<p><strong>Support<\/strong><\/p>\n<p>24000 is major support. Results week ahead. It showed pin bar formation showing heavy buying many times there. Global markets are up; we just have undergone another correction.<\/p>\n<p>I never discussed the Bollinger squeeze scenario. Now witness it.<\/p>\n<p><strong>Q.\u00a0Why are we using super trend?<\/strong><br \/>\nA.\u00a0I will tell in time. I am combining Bollinger\u00a0bands with candlesticks. It will increase the win ratio.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6138\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/Pin-bar-formation.png\" alt=\"Pin bar formation\" width=\"873\" height=\"523\" \/><\/p>\n<p>It about to trigger !!!\u00a0Now it is very near to the DMA.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6139\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/Banknifty-Intraday-trading-idea.png\" alt=\"Banknifty Intraday trading idea\" width=\"889\" height=\"504\" \/><\/p>\n<p>The blue line i.e DMA is ultra high chance of reversal but once confidently broke it will be amazing!<strong><span style=\"color: #ff0000;\"> Meanwhile, I am in the trade already &#8211;\u00a0<\/span><\/strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6140\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/Intraday-trade.png\" alt=\"Intraday trade \" width=\"819\" height=\"41\" \/><\/p>\n<p>Apart from naked future trade here is another weird idea &#8211;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6149 alignnone\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-6.png\" alt=\"BankNIFTY Option Trade\" width=\"372\" height=\"83\" \/><\/p>\n<p>Weird Idea is\u00a0Sell 23900 PE and Buy 24400 CE.\u00a0I am expecting a spike up on BN. So 24400 CE.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6150 alignleft\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/BankNifty-Trading-Idea-1.png\" alt=\"\" width=\"530\" height=\"390\" \/><\/p>\n<p><strong>Q. How to interpret squeezing of Bollinger bands to be up or down and also how to interpret if that upmove or downmove is going to follow?<\/strong><br \/>\nA.\u00a0BB Squeeze tells that a huge move is coming! Other indicators indicate which side it is going to be.\u00a0It needs experience. ! Trust me if you manage to stay in this group for 1-2 year; trust me you will be a trader anyways. 50% of &#8220;traders\/investors&#8221; don&#8217;t know what does Bank nifty 24500 PE means.<\/p>\n<p><strong><span style=\"color: #ff0000;\">Entropy 3bb works on BB expansion.\u00a0Entropy BRS works better on BB squeeze.<\/span><\/strong> Let&#8217;s take TCS &#8211;\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6141\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/TCS-Share-Price.png\" alt=\"TCS Share Price\" width=\"889\" height=\"526\" \/><\/p>\n<p>Whenever you trade something first check their daily charts. Its near resistance 1 but can break it easily. The main resistance is the upper red line. Then track fundamentals! TCS has its\u00a0results today! Then come to 15m.<\/p>\n<blockquote><p>There are two parts now. I am certain you&#8217;re not fast as me; so if you try to scalp for 1-10 points; you will be fucked once because you won&#8217;t close when stop loss hits.<\/p><\/blockquote>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6142\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/Bollinger-Bands-Expansion.png\" alt=\"Bollinger Bands Expansion\" width=\"874\" height=\"522\" \/><\/p>\n<p>Did you notice I made three red lines and three blue lines?<\/p>\n<ul>\n<li>Three red lines are BB squeeze.<\/li>\n<li>Three blue lines are BB expansion.<\/li>\n<\/ul>\n<p>Now the above blue line which is coming from the moon (look upper left corner) is 50 DMA.\u00a0Cross that line confidently (low of a green confirmed candle above that line is confident crossing) means TCS will shoot to the moon.\u00a0But otherwise, it is resistance!<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6143\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/bollinger-band-trading-strategy.png\" alt=\"bollinger band trading strategy\" width=\"874\" height=\"522\" \/><\/p>\n<p>The orange lines! <span style=\"color: #ff0000;\"><strong>You need to combine your skills of candlesticks where the only fact you need to know\u00a0are wicks!! <\/strong><\/span>Long tails!<\/p>\n<p><strong>Here is a trading idea for tomorrow &#8211;\u00a0<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6144\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/Banknifty-short-trade.png\" alt=\"Banknifty short trade\" width=\"889\" height=\"524\" \/><\/p>\n<p>This is at BB expansion. The candle bodies are reducing telling that bulls are not coming more! You can short it with stop-loss at the head. Low-risk high reward strategy!<\/p>\n<p>But the high chance market can open the gap up. Tomorrow will be a volatile day! (Not volatile as today though)!<\/p>\n<p><strong>Update:\u00a0<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-6153 alignleft\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/download-7.png\" alt=\"BankNifty Option Trading\" width=\"394\" height=\"90\" \/>Bank NIFTY Oct Futures closed at 24382 making us a massive gain! Our options trades made a massive gain too!<\/p>\n<p>Also as discussed in the <a href=\"http:\/\/unofficed.com\/unofficed-discussions-3-market-overview\/\">market overview of today<\/a>, FII did not pull money but dumped more money along with DIIs.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6148\" src=\"https:\/\/unofficed.com\/wp-content\/uploads\/2017\/10\/BankNifty-Trading-Idea.png\" alt=\"BankNifty Trading Idea\" width=\"877\" height=\"470\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Day trading in Banknifty with Bollingers. The discussion happened on yesterday live market on\u00a0 #nse_entropy \u00a0channel in our forum. Firstly the discussion started on<\/p>\n","protected":false},"author":1,"featured_media":5930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-220","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-trade-setups"},"_links":{"self":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/comments?post=220"}],"version-history":[{"count":3,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/220\/revisions"}],"predecessor-version":[{"id":5977,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/posts\/220\/revisions\/5977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media\/5930"}],"wp:attachment":[{"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/media?parent=220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/categories?post=220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unofficed.com\/theta\/wp-json\/wp\/v2\/tags?post=220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}