BOLLINGER BAND CROSSOVER
Trading on technical indicators has always been a challenge for traders as no indicator has been able to successfully encompass all aspects that are required to be considered to make a profitable trade. Some indicators talk only about momentum, some about trend, while others advocate overbought-oversold stocks, however, no single indicator has been able to envelope multiple areas. This is where Bollinger Band come to rescue. Probably the most statistically sound indicator, the Bollinger bands have been around for quite some time now and have proven to be one of the best indicators of all times. Bollinger bands not only help in identification of trend, but also inform the trader regarding the overbought-oversold regions, in addition in the support and resistance that the respective stock may face. Owing to this versatility, Bollinger bands can be used differently by traders depending upon their trading technique or style.
The Smart Trader + software offered by Trader Guide offers one of the versions of trading on Bollinger bands. It provides the traders with a list of stocks that were either in over bought or over sold region and have now started showing a reversal.
Following are the results that appeared on the SuperTrend crossover strategy :
The stocks that appeared as results on the Bollinger strategy offer reasonable accuracy along with favorable risk to reward ratio. However, it is highly advisable to take into consideration the trend of the index and then follow this strategy for better results. The best part about this strategy is that it offers us a great opportunity to buy good stocks at a reasonable prices or even cheaper rates, thereby turning the odds in favor of a trader.
Trader Guide, on its website , offers inbuilt Bollinger band strategy and much more like in its web based softwares. Traders are most welcome to register themselves on the website and get a taste of the amazing offerings by trader guide.
- Anand Singh Gaur
- Sunil Kothari