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