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Strategies & Market Trends : Technical Analysis - Beginners

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To: Michael Watkins who wrote (9278)2/13/1999 7:00:00 PM
From: Investor2  Read Replies (1) of 12039
 
Re: "Lately I have been experimenting with setting stops based on the volatility of the price action. ... Stop based on Standard Deviation of Average True Range (SSDATR)(ref(Close,-1) - (( atr(PATR) + std(atr(PATR),PDEV,1)) * (1+K)))..."

Not owning the charting program, the equation is like Greek to me. Nevertheless, I think I understand the concept and that is to set a stop a certain number of standard deviations below the price. Is that correct? If so, why not just use Bollinger Bands?

Best wishes,

I2
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