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In an earlier posting I had to alter and rip out a bunch of proprietary code
and missed some. In the previous code, "MidAvg" needs to be changed to
"MidBand" and the references to "+- Spike" in the plot statements should be
removed. Updated version below-- sorry for any inconvenience.
_____________________________________
For those who asked for details, sorry I can't discuss what I'm tracking or
in what time frame-- but for those who want to experiment, here are the
basics of what Bollinger presented.
The first technique is normalizing Bollinger Bands. This involves
re-plotting the Boll-Bands so that they are represented as 0 (zero) and 100
-- then, re-calculating the entity being tracked so that it also oscillates
between zero and 100 -- except where it tags one of the bands. At that
point it is outside of the zero to 100 range. The degree to which it is
outside the normalized bands gives useful information as to the power or
momentum in a given Market oscillation (this last sentence is my concept,
not Bollinger's).
He also discussed Band-width and how to normalize that. His theory being
that whenever the bands contract to less than a pre-determined band-width, a
Market move is imminent. This aspect can be demonstrated historically. The
contraction of band-width can be combined with a plot of the zero to 100
range mentioned above to identify a region where a move is imminent.
Some basic EL code for normalizing the bands and band-width follows:
Input: Length(20),PctChan(.15), Mode(1);
Vars : MidBand(0), BandWidth(0), Snd(True);
Value6=((H of Data1 + L of Data1 + C of data1) / 3);
Value1=BollingerBand(Value6,Length,+2);
Value2=BollingerBand(Value6,Length,-2);
MidBand=Average(value6,Length);
Value4=(Value1 - Value2);
{ The line below calculates normalized band-width }
If MidBand <> 0 then BandWidth = (Value4 / MidBand) *100;
{ The line below normalizes the entity being tracked }
If Value4 <> 0 then Value5 = ((Value6 - Value2) / Value4 *100);
If Mode > 0 then Begin
Plot1(100,"BollTop");
Plot2(50,"MidBand");
Plot3(0,"BollBot");
Plot4(Value5,"Osc");
End;
_____________________________________________
At 02:55 PM 2/16/99 -0000, you wrote:
>
>|I didn't attend, but a friend sent me some of the tapes of the speaker's
>|presentations. One technique that I picked up from a talk by John
>Bollinger
>|gave me a major tool in my trading arsenal for generating profitable
>signals
>|for intraday Index trading.
>
>Ron, Care to share it?
>
>regards
>
>Philip
>
|