The recent upmove in Nifty is definitely a good study case for Bollinger Band breakout study.
The index has broken out of the upper band and has been staying above the upper band for last 3 days.
In the last post I mentioned some of points which came into play in this move. Do read this post link here.
Since the main trend before this breakout was of range trading we needed two consecutive close above upper or lower band for any breakout to succeed. See Point # 2.
This time it happened. Also the index had one of the biggest move on first breakout (> +2%) which was followed on the next day with ~ +1% close. The volume action was all out in favor of bulls on breakout.
This was one of the best breakout which we quantified earlier.
One thing to notice in such breakout was rise from range. So the bollinger band expansion should happen.
Well that's quite evident as the uptick in the Bollinger bandwidth. See chart attached.
Related Posts:
Qunatifying Nifty Bollinger Bands : First down side breakout
Nifty and Bollinger Bands: Range trading indications
Quantifying: Nifty and Bollinger Bands Strategy
The index has broken out of the upper band and has been staying above the upper band for last 3 days.
In the last post I mentioned some of points which came into play in this move. Do read this post link here.
Since the main trend before this breakout was of range trading we needed two consecutive close above upper or lower band for any breakout to succeed. See Point # 2.
This time it happened. Also the index had one of the biggest move on first breakout (> +2%) which was followed on the next day with ~ +1% close. The volume action was all out in favor of bulls on breakout.
This was one of the best breakout which we quantified earlier.
One thing to notice in such breakout was rise from range. So the bollinger band expansion should happen.
Well that's quite evident as the uptick in the Bollinger bandwidth. See chart attached.
Related Posts:
Qunatifying Nifty Bollinger Bands : First down side breakout
Nifty and Bollinger Bands: Range trading indications
Quantifying: Nifty and Bollinger Bands Strategy
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