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

To: TraderAlan who wrote (557)	6/12/1999 1:18:00 PM
From: -	Respond to of 18137

<Bollinger Band/Candlestick Tutorial URL's:> Great post - good Tutorials! Thanks, -Steve

To: TraderAlan who wrote (557)	6/12/1999 2:01:00 PM
From: Richard Estes	Read Replies (2) \| Respond to of 18137

Bollinger Bands' main use is when they contract, they reflect low volalility. Price will break up or down shortly. You play the breakout. The path of Price is one of contraction and expansion. To think of BBs as bands containing price can lose profits. Bollinger and a look at the charts note that a real mover will go outside the bands and can remain there for a time. MAs come in many forms, I think metastock has about 8 or 9 types built in. Most are far more productive than the simple, EMA, or weighted ones. the Trying to keep up with the crowd or "smart" money using the same periods and types of indicators can be counterproductive. Traders should want settings that anticipate their reaction. I suggest everyone look at a 8 bar MA with a 7 bar lead to see if that fits your needs. A displaced MA. MAs are trying to smooth action to the periods set. They are based on 2 X the periods. a 21 bar MA is set on the expected cycle of 42 bars. you would expect a buy each 42 bars and a sell each 21 bars. On a 5 min chart, that would be a 1.75 hour MA on a cycle of 3.5 hours. So if you were wanting to trade every 5 minutes or so, you can see MAs might only give you trend direction information. Candlesticks give a very visual view of price range within the bar. The pattern aspects are less dependable on shorter time frames. TA continues to become more exacting in its measures with computers. Most of the RT time data sources have not caught up to the tools available. Elder and some others have simply complied some of the classic settings of indicators in use from the 20s to 80s in simple reading form as Edwards and Magee did with patterns. They are good books to begin to learn TA, but they do not provide any new thought that hasn't been present for years. Most of the classic futures based indicators don't measure the stocks of the 90s or this Bull of all bulls well. You have to improvise and test to determine what suits your needs best.

To: TraderAlan who wrote (557)	6/12/1999 2:27:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

Thanks for the BOLLINGER BAND link. I have had trouble finding good info on them. I will never use an indicator unless I readily understand the mechanics of it. Can anyone recc. a good book on BB's... I ordered Understanding Bollinger Bands [Paperback] By: Edward Dobson from Amazon, but it has a 4-6 week delivery and I think it is a very small book (large pamphlet). regards, OZ