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,

    Thanks for your valuable comment.

    The goal is we are not here to earn.We are here to share our knowledge and experience. Whole thing was started with a view to save novice traders from getting trapped. Our community members are dedicated to educate traders so that they can trade by themselves. Now days in social media like Facebook,Twitter,Telegram and Watsapp many people are getting trapped by FAKE analysts who are selling their calls to them and also fake PMS service are running where they loot innocent investors either by giving premium service with subscription charges or (If luckily they have earned something) profit sharing. We want to save the retail traders by educating them.

    And definitely we will be earning blessings.

    Keep visiting our website for further updates and share it with others too.

    Thanks and Best Regards
    Prateek John

  2. Appreciate your efforts
    I traded nifty using this startegy last week and it really worked
    Out of curiosity how are you going to earn from sharing this knowledge with other novice traders?

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