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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: - who wrote (543)	6/12/1999 3:00:00 AM
From: -	Read Replies (1) \| Respond to of 18137

Regarding my post on Bands/Candlesticks, here is a correction to the philisophical paragraph on what's neat about Bands - I left out the key point that Bands are useful in TRENDING markets as well: Anyway [end of soapbox] Trading Bands are truly great when used properly - the neatest thing about trading with Bands is: they are useful in either a sideways (non-trending) market (like now), OR in a trending market. In a sideways market, you can sell the upper band, and buy the lower band - trading either long or short. In a trending market, same thing - still works (almost all indicators are useful for either one, or the other, but not both). If you set Bands up properly for what you're trading, those bands can represent your statistically-likely "boundaries" for price. The principle of trading with bands as indicators is, BANDS CONTAIN PRICE. This is strictly a probability thing. Jake Bernstein has published some excellent, pragmatic Band-trading techniques that work, among others.

To: - who wrote (543)	6/12/1999 7:53:00 AM
From: TraderAlan	Read Replies (2) \| Respond to of 18137

PAT, For anyone who would like to try them, here is the SuperCharts/TradeStation formula for Keltner Bands: Top Band = XAverage(C,20)+(2.5(AbsValue(AvgTrueRange(20)))) Center Band = XAverage(C,20) Bottom Band = XAverage(C,20)- (2.5(AbsValue(AvgTrueRange(20)))) FWIW I completely disagree with your comments regarding Bollinger Bands vs Keltner Bands. I've used them both and dropped Keltner Bands completely as they just didn't provide any predictive information in many markets. OTOH Bollinger Bands appear to be much more independent and provide data regardless of underlying market characteristics. Also not sure why you refer to BBs as "exotic". The Keltner calculation is much less straightforward and there are dozens of accepted tech indicators that twist logic and brain capacity much more acutely than BBs. Finally not sure why you're attacking Bollinger personally. There are much odder characters out there than JB. Jake Bernstein and Jeff Cooper have the egos of Mt Rushmore. Eng should take writing lessons. And it might be a good idea for someone to let Joe Ross know that charging $10,000 for a traders weekend just isn't "cool". Alan

To: - who wrote (543)	6/12/1999 11:56:00 AM
From: OZ	Read Replies (2) \| Respond to of 18137

RECOMMENDED CANDLESTICK READING For those that want to read a what has become the "Bible" of candlestick charting,check this book out. JAPANESE CANDLESTICK CHARTING TECHNIQUES by STEVE NISON it is rare that so many people agree as to the quality of a book. OZ

To: - who wrote (543)	6/13/1999 5:03:00 PM
From: ynot	Respond to of 18137

PAT, thank you, i have just ordered both Nissan books and Elder's as well, my sentiment project is underway...this looks at email, icq, irc and thread postings and compares it to price/volume moves i will correlate this to the band data on 10 stocks and post results there are a couple of folks on SI looking at IPO's and i will also footnote any interesting results here. i think that since you are in the valley, you may be aware of the 'political' nature of the ipo's and the difficulty of discovering patterns with traditional techniques. hope the weather there is as good as up here, and that you didn't get stuck on the road to Tahoe. ynot ;)