Creating Your Own Trading System by Rene Koch, Ph.D.
ARTICLE SYNOPSIS ...Creating Your Own Trading System by Rene Koch, Ph.D.
It can be done -- and without the headache you
IN technical analysis, when you
hear the word band it consists
of two boundaries: one
above and one below the
price series similar to what
you see in Figure 1. In that, the daily price chart for Nextel (NXTL), the
thick red line is the lower boundary of a
"constant" band. Whenever prices go below
the red line, a buy signal (blue circle) is
generated. One or two bars later, the position
is closed (red circle). The green background
identifies the profitable trades.
Usually, prices ...