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• On Using Volatility Bands by Ahmet Tezel, Ph.D., and Suzan Koknar-Tezel, M.S.

  ARTICLE SYNOPSIS ...We've all seen a stock break out of its trading range and trend to new levels. The initial surge will appear as a sudden increase in activity, pushing the price higher. The higher prices often reach levels that indicate the stock is temporarily overbought and, after a pause, may continue to trend. Technicians use indicators to identify the temporary extremes, and one indicator is volatility bands. This article details two trading systems designed to take advantage of the breakouts. Many software packages for technical analysis of the stock market contain volatility bands using standard deviat...

AUTHOR: Ahmet Tezel, Ph.D., and Suzan Koknar-Tezel, M.S.DATE: OCT 1997SUBJECT: Trading Techniques