Trade Nifty and Banknifty using Bollinger Band and MACD.

Hello Traders,

Today i am going to share with you all one of my trading strategy using only Bollinger Band and MACD. It is a very basic,simple and easy but an effective strategy.

Whenever MACD is above zero line and it should be bullish divergence be vigilant on buying. Now next thing to note is Bollinger Band, it should expand and candle should close above Upper Bollinger Band that is a perfect long entry.

Lets see 1 Example.


In above chart please see boxed area.As soon as MACD crossed 0 line and BB started expanding their is no stopping till bearish MACD divergence. Trade can also be taken if you find bullish divergence  below 0 line but in that case you will not get big target,aim for target till it touches Upper BB then exit. BB always works as support and resistance and this strategy is like range breakout strategy.

Just look for just opposite setup for Shorting,here is the example.

bnf bearish

I prefer 10 minutes Time Frame for intraday trading but you can take positional trades also by checking for the same setup at higher Time Frame.

Please note: Please prefer to trade on Liquid stocks with good volume. This strategy may not work on the scripts which are easily manipulated. I prefer to trade on Indices and Nifty 50 components or scripts with good volume only with this setup.

Below is the AFL file for the given strategy.

macd bb strategy

11 thoughts on “Trade Nifty and Banknifty using Bollinger Band and MACD.

  1. Hi Manish,

    Yes its true it works perfectly on a trending market. I’ll suggest you to try this strategy on scripts with good volume too, you will get good result there as well.

    Thanks and Best Regards
    Prateek John

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