Bollinger Bounces

[sirensiren]

I have been working with bollinger bands lately and I have found that it is pretty successful scalping 3 or 4 pips off a bounce. Anyone else use this technique? I set the bands to 80 (recommended from doodi) and I enjoy using this in scalping off 5 minute charts.

[mister_doodi]

Good technique. Price penatration and band angles also factors in a successful trade.

[sirensiren]

When you say band angles are you reffering to the up or down trend of the angles and having those define entry and exit points?

[mister_doodi]

You can also do a dual band system. Set both bands to 80 and set the deviation on the first band to 1 and second band to 2 and it will create a high and low channel. You can get trade signals when price penatrates the bands.

[mister_doodi]

I havent done much research into this but I hypothesize that depending on the angle of the band at the time of the price penatration, it determines if the price will continue it's trend or reverse.

Anyone is welcome to experiment my hypothesis as long as I get the absolute and unequivocal credit.

[Sheldon]

I've started to use this too. You really need a big spike through the top/bottom of the band to make a good contrarion entry I find.

[techno791]

I use a special adaptive price zone which is similiar to a BB. Lately I only use it to know how far a price will go before we get a strong resistance on that candle, so see where the momo goes.
A filter was supposed to be the ADX, but since I gave up playing it for pure bounces, I don't use the ADX anymore. Without the ADX to know if these are valid, here is the win loss looking through on the five minute also

Cable 12 win and 4 loss and one undecided since march 11th.
Dollar yen 9 and 6.
Maybe it owuld be better if I used the ADX. ADX is so you don't enter in a trend, in a range market the prices should bounce.

The problem here is if the retrace is only 6 pips. If you have a 4 spread, how do you know you're getting in the very top/bottom to get the two pips, and then you have to exit at the top/bottom. So I don't use the technique anymore other than a guideline.