|
PureBytes Links
Trading Reference Links
|
Hi David,
Keltner Bands belong to the family of envelopes, as BB and other
systems.
Especially with BB there is a lot of difference.
The most important, according to my opinion, is that with Keltner
Bands we have sharp and distinguishable cuts with price curve,
whereas BB, in a sudden trend change, makes the well known balloons,
not proper for a trading system.
So, when price in a downtrend crosses support Kelner down line, you
may stay out of the market until the next positive cross.
This special property is emphasized in the code .
If there is more interest on similarities and differences between
envelopes I' ll give you additional reading.
Thank you for your interest.
Regards
Dimitris Tsokakis
--- In amibroker@xxxx, "David Holzgrefe" <dtholz@xxxx> wrote:
> Thanks For the Code Dimitris
> from a quick look they are similar to bollinger bands ?
>
> Regards David
> ----- Original Message -----
> From: "DIMITRIS TSOKAKIS" <TSOKAKIS@xxxx>
> To: <amibroker@xxxx>
> Sent: Wednesday, May 30, 2001 5:15 AM
> Subject: [amibroker] KELTNER BANDS
>
>
> > KELTNER BANDS
> >
> > were first introduced in the book How To Make Money in
Commodities,
> > by Chester W. Keltner and is an envelope following price
movements.
> > Using them we can have m o v i n g support and resistance lines
> > continuously, not only when and if a straight line exists.
> > With Amibroker built-in functions Keltner Bands are easily
> > impemented :
> >
> > KUP=EMA((H+L+C)/3,10)+EMA(H-L,10);
> > KDOWN=EMA((H+L+C)/3,10)-EMA(H-L,10);
> >
> > AN APPLICATION
> > When price crosses its support KDOWN it is better (for long
> > positions) to stay out of the market until a promising cross takes
> > place. This is emphasized in the following AFL code :
> >
> > maxgraph = 5;
> > KUP=EMA((H+L+C)/3,10)+EMA(H-L,10);
> > KDOWN=EMA((H+L+C)/3,10)-EMA(H-L,10);
> > graph1 = KUP;
> > graph0 = close;
> > GRAPH2=EMA((H+L+C)/3,10);
> > graph2style=1;
> > graph3 =KDOWN;
> > graph0barcolor=1;
> > graph2barcolor=3;
> > graph3barcolor=3;
> > graph1barcolor=3;
> > OUT=C;
> > GRAPH4=OUT;
> > GRAPH4STYLE=2;
> > GRAPHXSPACE=0.5;
> > GRAPH4BARCOLOR=IIF(C<KDOWN,15,0);
> >
> > For a simple trading system you may add
> >
> > BUY=CROSS(C,KDOWN);
> > SELL=CROSS(KUP,C);
> >
> > Dimitris Tsokakis
> >
> >
> >
> >
> >
> > Your use of Yahoo! Groups is subject to
http://docs.yahoo.com/info/terms/
> >
> >
|