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dave, what you may be looking for is the correlation coeffient, i believe this validates the deviation, not exactly sure as it has been a while, but i think that is what you need , formula wise , i might be able to dig up an old stats book for you if interested, i've wondered abput these bands as well, i've seen many go from upper to lower in proper fashion, but my questions fall along the same line as yours, if you pull up any stock on a breakout , i would be pretty sure it is touching or exceeding an upper band, my guess is with a strong breakout, and further deviation from the ma is going to expand the bands and i don't think i am going to worry too much about a stock reaching that upper band in this breakout stage, i would probably disagree with peg c about the exhaustion, as with volume increases , these look to be strong moves. i would also guess these stocks would eventually be caught by their ma , but , in many cases that i'm seeing and reading about, this became another buying opp before another run. i am also fairly new to all this , but this is the new found knowledge i have been following, |
