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Strategies & Market Trends : TA-Quotes Plus -- Ignore unavailable to you. Want to Upgrade?

To: Clark Wang who wrote (2762)	12/29/1997 2:05:00 PM
From: Al Greenleaf	Read Replies (1) \| Respond to of 11149

Clark - Thanks for your input. Understand this does not test for a move outside the bands (but I like that one too, as a short). This tests for 5 days of same or narrower bands, then an expansion of bandwidth of 10%+. These breakouts go in both directions, of course. For that, I have a Ouija Board. <gg> I am not suggesting that a Bollinger breakout is the key to finding stocks in a long rise. It is simply to find Bollinger breakouts, which seems to be in demand by some. Like Richard's Breakout scan, it DOES pay to look for retracements and see where the support is. For the record, my best indicators to be sometimes used in conjunction with this to find stocks beginning an uptrend are: OBV crossing 90 dma to upside OBV being up last two days after being down two days before that (REAL early) MACD 13,34,89 crossing signal, then crossing zero STOCHASTICS 55,21 crossing 21 dma -Al

To: Clark Wang who wrote (2762)	12/29/1997 5:46:00 PM
From: RICHARD LOCKIE	Respond to of 11149

Clark: I agree with your statement. Breakouts in rising bollinger bands are good candidates to short in the short term because they usually pull back. I try to find horizontal bollinger band breakouts. I feel these are breaking out for some reason. Richard Lockie

To: Clark Wang who wrote (2762)	12/30/1997 7:06:00 PM
From: Darth Trader	Respond to of 11149

<<<There is some danger using this approach. Bolliger said "A sharp move outside the bands followed by an immediate retracement of that move is a sign of exhaustion" >>>> True. In the Oct issue of Stocks and Commodities "on Using Volatility Bands", a trading system was established on these criteria: 1) The sysytem signals a buy when the closing prices are above the upper trading band three days in a row. 2) The system signals a buy when the currrent price closes above the upper band and the low price of the previous day was above the upper band or, 3) When the current low price is above the upper band and the closing price of the previous day was above the upper band. The first three scenarios are responsible for most of the buy signals. The fourth scenario: 4) A buy is signaled when the closing price price rises significantly over a short period, that is, the current price closes above the upper band, and is 40% above the lowest price during the previous 11 days.