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To: Thomas M. who wrote (31580)10/26/2000 1:17:27 PM
From: Les H  Read Replies (1) | Respond to of 436258
 
The numbers are arrived at by adding a multiple of the volatility or standard deviation of the index over a period of time to the index's moving average. The value will move over time. I'm normally use the 28-day moving average for the NDX for the volatility bands. The 4 standard deviation bands are currently at 2650 at the lower limit and 4050 at the upper limit. The more standard deviations one applies the less likely the price is to reach the extremes. The Keltner band is 2 1/2 standard deviations which should contain about 90 percent of the price activity.