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Strategies & Market Trends : Technical Analysis- Indicators & Systems

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To: TechTrader42 who wrote (1248)6/6/1997 10:50:00 PM
From: Wayners   of 3325
 
Brookelise,

I use a formula proposed by Harold Lanier on this thread. Its, (Upper Band - Lower Band)/(Middle Band)

(mov(c,14,s)+std(c,2))-(mov(c,14,s)-std(c,2))/(mov(c,14,s)

It works for me. I look for trade entries when the formula gets me a low number like .10. The hardest part is predicting which way the price is going to go when the volatility picks up. One thing I look at is positive directional movement. I look for a positive directional movement below 20 and preferably below 10 in order to justify going long. When the issue is in a very narrow, basing trading range getting the direction right can be difficult. If you have any suggestions let me know.

Wayne
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