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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: Johnny Canuck who wrote (32949)6/21/2001 3:13:38 AM
From: Johnny Canuck  Read Replies (2) | Respond to of 69946
 
Below are the symbols of stocks that closed outside their volatility bands on the previous day's close. The scanned database is composed of stocks that met my liquidity requirements and include those that were submitted by readers. These results are meant as an informational tool. If you are new to the volatility bands scans, make sure you read "A Primer for Volatility Bands" for information about this indicator.

As I have stated before, it has been my general experience that breaks outside of the bands can lead to bigger moves, but it is not guaranteed. I have also seen that in trading-range environments, the bands can be used in an "overbought/oversold" fashion. In that environment, breaks outside the band would be the alert and the move back inside would trigger the trade. How you decide to use volatility bands is, of course, up to you

schaeffersresearch.com

[Statistically these stocks are oversold or overbought. Notice that the DOW, SP and COMPX are oversold, but only slightly so. This condition can continue to persist for quite a while. Only grossly oversold and overbought stocks tend to correct dramatically.]