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


To: Clint E. who wrote (33050)6/24/2001 9:10:52 PM
From: j g cordes  Read Replies (1) | Respond to of 70319
 
Hi Clint, interesting site on volatility bands.. is the thinking behind it that stocks trading outside their bands will snap back within the bands or that they will continue for a while? I note on the Nasdaq chart provided at the site that the drop in Feb went from 2500 to 16?? without snapping back. Not sure how one would have used the first few red dots mid February to anticipate a new position or when to get out?

In the explanation section Schaeffer says:

"The second step is to filter this list with sentiment to increase the odds that the move will continue. We consider stocks that break above their upper bands while showing a pessimistic sentiment backdrop high-probability long trades. Conversely, stocks breaking below their lower bands with an optimistic sentiment backdrop would be considered potential short trades."

My question about the out of bounds list is what's the sentiment readings on each stock?

Jim