Bollinger bands bulge


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These are the parameters for a proprietary volatility breakout system that we trade during certain periods. A buy is triggered on a break above the upper number and short is triggered on break below the lower number.

What is the Golf System?

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A SHORT SKIRT is a quick scalp trade made in the direction of the short-term trend.
The setup occurs after the S& P has made a sharp "impulse" move. The pattern tends to look like a continuation flag on a 6-minute chart. We call it a "Short Skirt" because the trade usually lasts between 7 - 65 minutes. The concept is - "quick in and quick out without getting caught."

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Chart 5 shows Honeywell (HON) with an extended trading range in the 55-55 area. There was a move to the upper band in May, but no breakout for a signal. Instead, HON clearly broke below the lower band to trigger a bearish signal in June 7557.

A "Z day" is a consolidation day that often follows a trend day. The morning period is characterized by a testing back and forth in the price action. We use a different set of trade strategies on these days than we do on other days. one of our favorite trades is the bollinger band trade. see bollinger band explaination in the FAQ

​ Bollinger Bands® employ upper and lower standard deviation bands together with a center simple moving average band around price to identify high and low volatility points. While it can be a real challenge to forecast future prices and price cycles, volatility changes and cycles are relatively easy to identify. This is because equities alternate between periods of low volatility, followed by periods of high volatility, and so on - much like the calm before the storm and the inevitable inactivity afterward.

we use standard deviation bands centered around a 75 period moving average to make trades on the day following a trend day. we do these trades in the morning session only. the concept behind this is that a push to the upper or lower band will setup a countertrend trade. the objective is a push back to the moving average. no stops were used in our testing, we just used an exit of whenever the trade hit the moving average or end of day in the worse possible scenario.

Bollinger BandWidth is an indicator derived from Bollinger Bands. In his book, Bollinger on Bollinger Bands, John Bollinger refers to Bollinger BandWidth as one of two indicators that can be derived from Bollinger Bands. The other indicator is %B.

This color rule is based off an average true range function added or subtracted from the previous swing high or low. It is a variation of the parabolic stop and reverse formula published by Welles Wilder in his book, New Concepts in Technical Trading Systems. We find that it provides useful pattern recognition in highlighting the short-term swings on a bar chart.

ELD file | ELA file | ELS file

The Bollinger Band Squeeze occurs when volatility falls to low levels and the Bollinger Bands narrow. According to John Bollinger, periods of low volatility are often followed by periods of high volatility. Therefore, a volatility contraction or narrowing of the bands can foreshadow a significant advance or decline. Once the squeeze play is on, a subsequent band break signal sthe start of a new move. A new advance starts with a squeeze and subsequent break above the upper band. A new decline starts with a squeeze and subsequent break below the lower band.

Stocks that are market leaders can often turn before the stock index futures do. This is particularly true of the high beta 'momentum' stocks. Monitoring individual sectors and relative strength can add valuable information regarding the overall technical condition of the market. We limit our database to only the top 755 trading stocks.


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