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<SPAN
class=680430413-21052001>Excellent question, Ray. I am sure others can give you
a better answer.
<SPAN
class=680430413-21052001>
Hurst
and Bollinger are very different animals. Hurst uses constant width envelopes
that are designed to show price action within the context of a cluster of
predictable cycles. Bollinger uses variable width bands designed to show price
in relation to volatility.
<SPAN
class=680430413-21052001>
As you
know, Bollinger Bands are very useful, especially for short term traders. One of
the advantages is that the bands are plotted to the last price bar. Widening
bands identify expanding volatility, and contracting bands identify contracting
volatility - valuable information. Bands often contract significantly just
before an explosive price move.
A
nifty oscillator can be constructed by plotting the distance of the band from
the moving average. Absolute levels of the indicator and trendlines drawn on it
are informative.
<SPAN
class=680430413-21052001>
An
oscillator constructed by subtracting the moving average from price provides
significant information about volatility and overbought - oversold levels to
complement Hurst envelopes.
<SPAN
class=680430413-21052001>
In the
attached chart, it is clear (to me) that the 60 period MA is providing support
for price at the present time. There is an apparent 9 1/2 month cycle in MU
which I have projected to its anticipated conclusion in time (but not
necessarily price). While MU may well revisit the upper envelope, the trend
appears (to me) to be down into the expected low.
<SPAN
class=680430413-21052001>
Hurst
followers would be interested in shorting near the upper band for the ride
down toward the lower band.
<SPAN
class=680430413-21052001>
<SPAN
class=680430413-21052001>Bollinger Buddies would be interested in an option play
to capture the anticipated increase in volatility.
<SPAN
class=680430413-21052001>
Hope
this helps -Stan
<SPAN
class=680430413-21052001>
<SPAN
class=680430413-21052001>
<SPAN
class=680430413-21052001>
<FONT face="Times New Roman"
size=2>-----Original Message-----From: candlestyk@xxxxxxx
[mailto:candlestyk@xxxxxxx]Sent: Monday, May 21, 2001 4:14
AMTo: realtraders@xxxxxxxxxxxxxxxSubject: [RT] Re: SBUX
- MU<FONT
size=2><<Normally, when I buy a turn up from the lower envelope, the
intention is tosell near the upper envelope. When I short a turn down from
the upperenvelope, the intention is to cover near the lower envelope.
>> Hi Stan, How do Hurst envelopes compare
with Bollinger Bands? A lot of the semi stocks have been basing
between the upper and lower bands of the 20dBB, I assume a Hurst envelope
would show the same. I am sending a gif of MU. Thanks for any
comment, Ray F To
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