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--- In amibroker@xxxxxxxxxxxxxxx, "Steve Almond" <steve2@xxxx> wrote:
> Now that is an excellent, educational post!
>
> 1. Can you read 4. again and confirm the sell signal is triggered by
a close
> below the TOP band?
> 2. Do you use Bollinger bands in the same way as described above?
>
> Steve
> Q1. Yes Q2. No
>
>
> ----- Original Message -----
> From: "jmschuller" <jmschuller@xxxx>
> To: <amibroker@xxxxxxxxxxxxxxx>
> Sent: Wednesday, June 23, 2004 8:44 PM
> Subject: [amibroker] Acceleration bands - Price-Hadley
>
>
> > Recently there was quite some interest in and confusion about
Price
> > Headley Acceleration Bands: Where to find info, the formulas and
how
> > to apply them
> > 1. To find: Nowadays often the easiest way to find this type of
info
> > is by going to Google and search keywords,e.g. "acceration bands"
(in
> > Opera, the search bar is next to the addressbar; incidentally
Opera
> > is superior to IE in many aspects and also somewhat faster).
> > 2. Formulas: The bands are described extensively in "Big trends in
> > trading : strategies to master major market moves / Price Headley,
> > 2002",on pg.91 and on
> > 3. Application: The bands are meant for well trending stocks with
> > solid earnings growth (25%), in short for well behaved stocks that
> > respond well to a host of other indicators too.
> > 4. A Buy signal occurs after 2 closes above the top band and a
Sell
> > signal after a close below it.
> > 5. The original formulas are:
> > UpperBand = MA((H*(1+2*((((H-L)/((H+L)/2))*1000)*0.001))),20);
> > MidBand = MA(C,20);
> > LowerBand = MA((L*(1-2*((((H-L)/((H+L)/2))*1000)*0.001))),20);
> > 6. This hard-to-decipher formula is unnecessary complicated and
can be
> > easily reduced to a straightforward form:
> > BWRatio = (H-L)/(H+L) ; //BandWidth Ratio
> > UpperBand = MA(H*(1+4*BWRatio),20);
> > LowerBand = MA(L*(1-4*BWRatio),20);
> > 7. From the simplified, but equivalent formulas, one can easily
> > determine, that acceleration is predominantly caused by the Center
> > Band behavior, not by the Top and Bottom bands. Also although a
trend
> > technique, the late Buy and Sell entries force loss of a large
> > portion of the trend
> > 8. Essentially, the bands are part of a family of MA-based
Top/Bottom
> > Bands shifted wrt to the Center MA band
> > 9. In fact, the Buy and Sell points are often identical to those
> > derived from a MA Center band with Percentage offset from the
Center:
> > e.g. (100-Const.)/100*MA,(100+Const.)/100*MA.
> > 10. Bands based on a statistical criterion (e.g. Std Dev, ATR)
such as
> > BB bands in general provide earlier Buy and Sell signals.
> > 11. The impact of the various parameters can be easily visualized
with
> > the PARAM feature (AB4.25 and up)
> > 12. To verify above statements and of course also for play and
> > comparison, below some simple indicator code containing:
> > 1. Original Price headley formulas
> > 2. Price Headley formulas simplified (by removing unnecessary
> > parentheses and factors)
> > 3. Price Headley formulas simplified; (generalized with
PARAMS)
> > 4. MA Bands offset from Center MA Band (with PARAMS)
> > 5. Bollinger Bands (with PARAMS)
> >
> >
//====================================================================
> > ========================================================
> > //Acceleration Bands-Price Headley
> > MaxGraph = 10;
> >
Graph0Style=Graph1Style=Graph2Style=Graph3Style=Graph4Style=Graph5Styl
> > e=Graph6Style=Graph7Style=Graph8Style=1;
> > Graph0Color = Graph1Color = Graph2Color = 7;Graph3Color =
Graph4Color
> > = Graph5Color = 6; Graph6Color =Graph7Color = Graph8Color = 1;
> > Plot(C,"C",1,64);
> > // 1. Original Price headley formulas
> > UpperBand = MA((H*(1+2*((((H-L)/((H+L)/2))*1000)*0.001))),20);
> > MidBand = MA(C,20);
> > LowerBand = MA((L*(1-2*((((H-L)/((H+L)/2))*1000)*0.001))),20);
> > //=========================================
> > Graph0 = UpperBand ; //Yellow
> > Graph1 = MidBand ;
> > Graph2 = LowerBand ;
> > /*
> > 2.Price Headley formulas simplified (by removing unnecessary
> > parentheses and factors)
> > BWRatio = (H-L)/(H+L) ; //BandWidth Ratio
> > UpperBand = MA(H*(1+4*BWRatio),20);
> > LowerBand = MA(L*(1-4*BWRatio),20);
> > */
> > //=========================================
> > // 3.Price Headley formulas simplified; generalized with
additional
> > PARAMS
> > ConstBWR = Param("ConstBWR",4,1,10,0.5);
> > PerMAPH= Param("PerMAPH",10,2,30,1);
> > BWRatio = (H-L)/(H+L) ;
> > UpperBand = MA(H*(1+COnstBWR*BWRatio),PerMAPH);
> > MidBand = MA(C,PerMAPH);
> > LowerBand = MA(L*(1- COnstBWR*BWRatio),PerMAPH);
> > Graph3 = UpperBand ; //Blue
> > Graph4 = MidBand ;
> > Graph5 = LowerBand ;
> > //=========================================
> > // 4. MA Bands
> > OffsetPerc= Param("Offset Perc.",15,0,50,1);
> > PeriodMA = Param("PeriodMA",10,2,30,1);
> > UpperBand = (1+OffsetPerc/100 )* MA(C,PeriodMA);
> > MidBand = MA(C,PeriodMA);
> > LowerBand =(1-OffsetPerc/100 )* MA(C,PeriodMA);
> > Graph6 = UpperBand ; //Black
> > Graph7 = MidBand ;
> > Graph8 = LowerBand ;
> > //==========================================
> > // 5. Bollinger Bands
> > BBStdDev = Param("BBStdDev",2,0.5,3,0.5);
> > //BBStdDev = Param("BBStdDev",2,0.25,4,0.25);
> > BBPeriod = Param("BBPeriod ",10,5,30,1);
> > //BBTop = BBandTop(C,BBPeriod ,BBStdDev);
> > //BBBottom = BBandBot(C,BBPeriod ,BBStdDev);
> > BBTop = BBandTop(H,BBPeriod ,BBStdDev);// I often use the H and L
> > instead of C
> > BBBottom = BBandBot(L,BBPeriod ,BBStdDev);
> > Plot(BBTop ,"BBTop ;",2,1); //White
> > Plot(BBBottom ,"BBBottom ",2,1);
> > Plotcolor = IIf(C-O>0,5,4);
> > minimum = LastValue( Lowest( Volume ) );
> > maximum = LastValue( Highest( Volume ) );
> > Plot( MA(V,1),"Volume = ", Plotcolor ,
> > styleHistogram|styleNoLabel|styleOwnScale,Minimum,4*Maximum);
> > Title = EncodeColor(7) + "Acceleration Bands-Price Headley;
Period =
> > 20;" +
> > EncodeColor(6) + "\nAcceleration Bands; ConstBandwidth Ratio = "
+
> > WriteVal(COnstBWR ,2.0) + "; PeriodMA-Price Headley = " +
> > WriteVal(PerMAPH,2.0) + ";" +
> > EncodeColor(1)+"\nMA Bands; CenterBand MA Offset; Offset Perc = "
+
> > WriteVal(OffsetPerc,2.0) + "; PeriodMA = " + WriteVal(PeriodMA ,2.
0)
> > +";" +
> > EncodeColor(2)+ " \nBollinger Bands - StdDev = " +
WriteVal(BBStdDev,
> > 2.0) + "; BBPeriod = " + WriteVal(BBPeriod ,2.0) +";" ;
> >
> >
> >
> >
> >
> >
> > Check AmiBroker web page at:
> > http://www.amibroker.com/
> >
> > Check group FAQ at:
> http://groups.yahoo.com/group/amibroker/files/groupfaq.html
> > Yahoo! Groups Links
> >
> >
> >
> >
> >
> >
> >
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