Bollinger Bands : Momentum Trading Stock Market | Trading Chanakya
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- čas přidán 4. 04. 2024
- Bollinger Bands and momentum trading are two popular concepts in the stock market. Let's break them down individually and then discuss how they can be used together in momentum trading strategies.
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Bollinger Bands:
What are they? Bollinger Bands are a technical analysis tool developed by John Bollinger in the 1980s. They consist of a centerline (typically a 20-day moving average) and two price channels (bands) plotted above and below the centerline. The width of the bands is based on the standard deviation of the price.
How are they used? Bollinger Bands are used to identify volatility and potential price breakouts. When the price touches or crosses one of the bands, it's considered a potential signal of overbought or oversold conditions. Traders often look for price reversals or continuations when the price interacts with the bands.
Momentum Trading:
What is it? Momentum trading is a strategy that focuses on following the trend of a stock's price movement. It relies on the idea that stocks that have performed well in the past will continue to perform well in the future (or vice versa). Momentum traders typically buy stocks that are rising and sell short stocks that are falling, with the expectation that the trend will continue.
How is it used? Momentum traders often use technical indicators to confirm the strength of a trend and to time their trades. Common indicators include moving averages, Relative Strength Index (RSI), and MACD (Moving Average Convergence Divergence).
Using Bollinger Bands in Momentum Trading:
Momentum traders often combine Bollinger Bands with other technical indicators to confirm momentum signals:
Bollinger Band Squeeze: When the bands narrow, it indicates low volatility. This could precede a period of high volatility and strong momentum. Traders may wait for a breakout above or below the bands as confirmation of a momentum move.
Bollinger Band Breakout: When the price breaks out of the bands, it could signal the start of a new trend. Momentum traders may enter positions in the direction of the breakout, expecting the trend to continue.
Divergence: If the price makes a new high or low but the corresponding high or low of the Bollinger Bands fails to do so, it could signal weakening momentum. Traders may use this divergence as a signal to exit or reverse their positions.
Confirmation with other indicators: Momentum traders may use other technical indicators such as RSI or MACD to confirm signals generated by Bollinger Bands, enhancing the probability of successful trades.
In summary, Bollinger Bands provide valuable information about volatility and potential price movements, which can be used by momentum traders to identify entry and exit points in the stock market. However, like any trading strategy, it's essential to combine Bollinger Bands with other indicators and risk management techniques for effective trading.
#bollingerbands #momentumtrading #tradingchanakya
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Your valuable explanation is really very helpful n pragmatic 🙏
Bahoot accha sir..... Itne simple tarike se samjha dete h... Bahoot acchi stretegy lag rhi h.... Me bhi ispe trade karuga... Ye techniques pata nhi tha... Loss thoda bahoot bhi recover hua to aapka aabhari rahuga....
Very simple strategies. Very well explained. Thank You 😊
Great strategies.
Thank you Anmol ji 🙏
बहुत सुंदर कुछ नया मिला
धन्यवाद जी
very helpful and informative thanks.
nice thanks sirji, apki double chek stra. thik kam kar rahi hai esme aur kuchh kar sakte hai kya? thanks nice
Great sir....Really helpful🤝✌️
Gajab. Strategy
❤ thanks Sri for the valuable information
Great....thank you...can you give backtest result for for the second strategy in nifty and banknifty option buying
Thank you sir I appreciate you ❤❤
Super. Thank you
Very good knowledge sir thank you so much ❤
Good explanation brother.
Lovely explanation
अति उत्तम सर
Very nice video sir ji....
Very easy and knowledgeable video of bb and my question is this work only day time or 1 hour also....? Or any other time frame also...?
Best best best hai sir.
Asa video you tube par
Nahi deha.
5 year se aap ko follow kar ta hu.
❤❤❤
Thank you sir....
Thank you very Much. Please make a Video on Short Selling.
Nice efforts
Nice educate 👍👍
Great
very nice
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Good strategy
Bhai sab
Time frame daily rakha hai intraday me 5min TF chalega kya index par.
Good video
Sir future ke liye ye strategy work karegi kya ?
Sir gapdown hoga kya 47600cmp 241ka 2 lot liya hai
Kaunsi candle ka timeframe zyada kaam karega?
sir Timr fram kya hoga live mai
नमस्कार गुरुजी आपने बहुत अच्छा तरीके से बताया मी सेकंड नंबर कार्टून अपना था अभी ये व्हिडिओ दिखा अभी मैं एक नंबर वाला भी स्टूल अपना लूंगा ये जानकारी के लिए आपको बहुत बहुत धन्यवाद
🙏
Do these strategies work on lower timeframes also?
❤ gud 👍
Very nice sir.❤from Kolkata
Thanks
Stander deviation क्या होता है
Can anyone help me understanding this trading strategy 🤔
Buying 200 gold bees and shorting 1 gold petal future of current month expiry. Averaging with 100 bees buying on every 2% dip and selling 1 extra future sell with every 200 extra bees. Thank in advance 🙏. Will square up my position fully if gold bees gain 5% or exit from only future if bees get down(will average bees)
Super super super
Time frame?
❤🎉
Tm lete ho kya Bhai is strategy pe
If possible pls make a Scanner
Yes possible
❤❤❤❤❤🎉
Momentum with PCR
1 standard deviation is 68% confidence level and not 66% please
Live market Mai kuch work nhi karta hai ,sare indicators dekh chuka hu
Psychology ka issue hai apka usper kam kariye
Jahil insaan, tumhae pahlae trading ko saekho, jahil trader, phir indicator ka use saekho, phir indicator use karo, jahil aadmi
Your time has come to search for buisness which suits your psychology
more trade if sd is 2.5
Sir mai har ek youtuber chikani chopadi bato ka on the spot comment karàke jawab deta hu lekin sir tumhare video jan dalke dekhata hu
2 standard deviation is 95% confidence level
Blinger band time firm sir please wait for reply
5 or 15
"Bollinger Bands : Momentum Trading Stock Market | Trading Chanakya" के इस शानदार वीडियो के लिए आपको हार्दिक धन्यवाद। परमात्मा आप और आपके अपनों अपनी कृपया सदैव बनाए रखें यही प्रार्थना है।
Thank You Very Much for this Excellent Video. This is My Prayer that God Always Bless You and Your Loved Ones.
🙏
Bhai ye 1 day ka chart hai intraday to 5 to 15 minutes per hota hai 😅
confusing
Ye bandha khud trading nhi karta😅😅😅
no sir kuch special nahi h isme...isse koi khas profit nhi hone wala..
Repaint karta hai ye indicator. Koi kaam ka nahi
Bhai haikin candal lga do our achha hoga tred our eske sath macd rsi iska bhi confirmation lo firr paisa banega 100% sirf boleger band ke uper tred mat lena our ... future mai tred karo option mat karo fut best hai paisa agar banana hai to future best
Nothing new. Very old and common strategy. Try to teach something new and different.
Pura bakwas he ap jaoi bharat jhunjhunwala ka vedio dekho fir yutube pe aoo kyun esaa motlab faltu vedio dete ho sir