How to Locate Strong Setups -3 !!

(SS) Strong Setups Series - 3

Now you can know the bias of market -Up/ Down Sideways, what's next?

Next is my favourite Bollinger Bands.. We should use default settings of Bollinger Bands (20,2) as i am of the view, we should see what all people are looking at & infer with same information.

We are not gonna use any other kind of Support Resistance.. Lets keep the chart as cleaner as possible..

2nd Rule - Wait for BB Squeeze. but the challenge is to identify the squeeze. It looks like marked in below Nifty 15 min chart. Plz go through below questionnaire after the chart to get some clarification..

- What is the squeeze exactly ?? - When both of the Bollinger bands come nearer to each other and both BB are Flattish -neither Up or down (lesser than 20 degrees angle approx.. yeah yeah,, no need to measure with a protector, use naked eye). See the BB as marked above.

- How much nearer is nearer?? - Just have a look at the past candles & BB behaviour. From a bigger volatility, the mkt must have come to little volatility. Some people use ATR (14) for the purpose, but i like naked BB.

- When should we say the squeeze have started?? - When more than 5 candles formation is completed without touching any of the BB, we can say our desired Squeeze has started. Below Nifty 30 min chart has just formed one !!

- Shall we enter on break of Squeeze on touch or a Close outside BB (COBB) ?? - NOOOO, You will be Trapped !!

Will get back with few more examples & the Entry Pattern .. till then keep looking and analysing old Squeezes.. Its Fun to see how much it forms and how much time the mkt is in it especially in lower time frames...