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[amibroker] Re: Volatility Breakout with Bollinger Bands



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B = %% relative (to BB_width) distance from BB bottom to current 
Close::
B = (Close - BB_bottom)/BB_width,
where 
BB width = BB_top - BB_bottom.
The code says buy when Close to BB_bottom distance exceeds 95%
of the band width (plus some other conditions met, such that the BB 
width is small and money flows into the issue), so that the price 
seems to be breaking out of the range.

cheers-- alex

--- In amibroker@xxxxxxxxxxxxxxx, Bill Halliday <halliday_mo@xxx> 
wrote:
>
> I wrote this email to Joachim Feseck at joachimfeseck@xxx, but the 
address in no-longer valid. This is the program he uploaded to the 
ALF Library on 2003-01-19 :
>  
>   Volatility Breakout with Bollinger Bands
>   
> Band= (BBandTop( C, 20, 2 ) - BBandBot( C, 20, 2)) / MA(Close, 
20 ) * 100;
> B= ((Close - BBandBot( Close, 20, 2 )) / (BBandTop( Close, 20, 
2 ) - BBandBot(
> Close, 20, 2 ))) * 100;
>    
>   Buy = band < 15 AND b > 95 AND MFI(10) > 60;
> Sell = Cross(Close,SAR(0.01,0.2));
> Short = band < 15 AND b < 5 AND MFI(10) < 40;
> Cover = Cross(SAR(0.01,0.2), Close);
>    
>   Filter = (band < 15 AND b > 95 AND MFI(10) > 60)  OR (band < 15 
AND b < 5 AND MFI(10) < 40);
>    
>   NumColumns = 1;
> Column0 = Close;
>  
> Could someone explain what B is? 
>   
> Highlighted are comments I don't understand, could anyone expand 
on them for me?
>  
> Description:
>  
> This Tradingsystem gives buy and short signals when after 
Bollinger Bands got very narrow they spread out and the Close 
touches the band (top or bottom). Additionally the MFI has to 
confirm this volatility breakout. But please be carefull because 
some stock suddenly change direction and in this case the really 
change! For more information please read "Bollinger on Bollinger 
Bands".
>   
> Thanks,
>   
> Bill
> 
> 
>  
> ---------------------------------
> Be a PS3 game guru.
> Get your game face on with the latest PS3 news and previews at 
Yahoo! Games.
>



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