Posted by: Babu Suresh | February 10, 2012

HMA-Bollinger Band Trading System

Presenting here last 2 sessions’ charts with my HMA-Bollinger Band system. For the discussion I have taken JSW Steel –Cash and Nifty futures charts, highlighting my entry points. These are two classic charts that will exhibit the potential of HMA-Bollinger Bands combination along with other very basic indicators.

The combination of HMA-BB along with RSI, MACD & TRIX clearly demonstrates the necessary features such as, formation, beginning, continuation and end of a trend, momentum, strengths and weaknesses of price, essentially required for a day trader.

The exit of a trade, be it long or short, can be determined by either,

  1. One’s own target range, such as 10, 15, 20 etc. points or
  2. Exit when the price starts settling inside the HMA, after a big rise or fall

JSW Steel – Cash

JSW Steel1_100212

Nifty –  Future

Nifty F_100212

On 9th  instant I had sent a message to my friend thru’ yahoo messenger, the message I had highlighted below for our discussion sake and also called him to convey the same over phone. The main objective of that exercise was, I had already demonstrated him about my system and had requested him to just observe the price movement but do not take any positions.

Ravi T (09/02/2012 11:36:59 AM): Widening premium of Nifty Fut. looks to be less of a good ominous sign.
Ravi T (09/02/2012 11:40:19 AM): Nevertheless, 5431 looks to be a possible target.

I hope this would suffice at this juncture and will continue posting with the hope when any of you, fellow day traders stumble on my blog, you will give the system a try to enhance your trading in a better way. Just a reminder, I trade live account and as always would present my system only when I am satisfied with my results.

Healthy And Wealthy Trading

Healthy And Wealthy Weekend


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