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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: Chandler H. Everett who wrote (1262)6/3/1997 2:08:00 PM
From: TechTrader42   of 3325
 
I'm really looking forward to reading yours, too. In fact, as I typed that last sentence, I typed really as reading, I'm so eagerly anticipating reading yours. My latest addition to my formula involves limiting the sell signals to when the upper band is higher than an upper envelope line. It really works, too. Here's the addition, which you can try tacking onto your B band system:

(mov(Close,20,S)+std(Close,20,2))>(mov(c,89,s)+(.062*(mov(c,89,s))))

You can play with the moving averages, and with the vertical shift of the envelope. I find it works best with a vertical shift of between .05 to .09 (5 to 9 percent).

You can plot the bands over the envelopes, too, and see how the peaks of the upper bands rise above the envelope line. Of course, they rise above cuz of the standard deviation in B bands. You know that, but someone else might wonder.

It doesn't work well with buy signals, using the lower band and lower envelope line, because B bands miss some good buy signals already. You don't want to restrict them further. But it does work with the sell signals.

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