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May I suggest using a 10 day simple moving average of the highs, lows,
and the median price. This is a major part of a template I have for
trading the T-Bond and currencies. Without belaboring this list on my
trading methodology, I would suggest studying the price movement above
and below these "bands". I believe you will see price in very revealing
way. I had used the high and low bands for several years, but when I
installed the median price mov avg, this produced a different
perspective of price behaviour. For an instance, observe when price has
two consecutive closes above the high, and falls to the median price but
does not penetrate the median price. Usually this represents a low risk
entry. Other observations will produce recurring patterns that are
indeed tradable.
Al Taglavore
wayne walusiak wrote:
>
> re:The reason I brought up the idea of the MA enveloped was the recollection
> of a Glen Ring seminar some years ago where he mentioned using a retracement to
> the envelope boundary for an entry point, subsequent to a momentum signal.
>
> > After ploting it, there does not seem to be any reason to prefer such a
> > boundary to that achieved via the BBands, or even the % bands. I do
> > appreaciate the information discussing the different ways to plot this array.
>
> One technique I heard was to use the last 10 day highs for a top and the last 8
> day lows for the bottom of the envelope, then use a crossing of two full bars
> below or above the channel for an entry long or short...crossing back into the
> channel was not reason to go the other way until you have 2 bars on the other
> side of the channel. Any input anyone ?
>
> Wayne Walusiak
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