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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: mulligan who wrote (9095)	1/12/1999 8:30:00 AM
From: mulligan	Respond to of 12039

Good morning everyone. Here is the response from Mr. J. Stan Hjartberg, Director of Market Information at Quote.com: "That's because we named it that, after Richard Donchian (RIP) of Hayden Stone who pioneered system trading and whose 4-week rule is one of the best trading systems around (basis for Richard Dennis' Turtle system.) They are commonly known as Price Channels (TradeStation) but that seemed a bit generic. The channels simply plot the highest high and lowest low over the period number of bars. They are very similar in their behavior to Bollinger Bands, but rather than estimating the range based on the variability of price changes in the period, the range is determined by the extreme high and low prices during the period. The channels serve as automatic support and resistance lines from previous extreme prices. Not much in the literature about them other than Perry Kaufman's Technical Trading Systems book (Wiley, 1986) and all the stuff about trading the Turtle trading system that has been proliferating on the web, but I plan to add more about them in the QCharts help."