Bollinger band on Dow with MA

[sandeepd]

Hello every one,

I have recently started trading and have tested some ideas of trading with Bollinger bands on Dow with reasonable sucess.
I use MA to indicate to close the position.
I was wondering if anybody out there has done similiar trades and have done succeed doing it well.

I wanted to get some expert opinions before I take the plow with some real money on this idea.

Regards

Sandeep

 

[FTSE Beater]

Hi Sandeep

Although I haven't used Bollinger bands or MA's on the Dow, I've used them on stocks - and you have to be careful. Just because the price falls outside one band - it doesn't mean that a reversal will happen soon.

As with all indicators, how your using them will determine the end result

HTH

 

[options]

They work great with hindsight trading though FB. :cheesy:

 

[esiotrot]

Hi Sandeep

Like FB I do not use Bollingers for the DOW but have used them for stocks and FTSE.

Like all indicators: sometimes they work - sometimes they don't . Or to be more precise - sometimes they are USEFUL sometimes not.

I use them in a couple of ways:

When they narrow look for an increase in volatility - then follow them when they go up/down at around 45 degress.

Watch them "cling and swing"

Look for outside/inside signals indicating a swing to the opposite band.

A normal BB utilises the 20ma so by using either 10(say) or 50ma you could look for crosses.

BTW - after trading stocks and Options for ages I am just starting to look at the DOW, so let us hear how you get on.