B = %% relative (to BB_width) distance from BB bottom to current Close:: B = (Close - BB_bottom)/BB_width, where BB width = BB_top - BB_bottom. The code says buy when Close to BB_bottom distance exceeds 95% of the band width (plus some other conditions met, such that the BB width is small and money flows into the issue), so that the price seems to be breaking out of the range.
cheers-- alex --- In [email protected], Bill Halliday <[EMAIL PROTECTED]> wrote: > > I wrote this email to Joachim Feseck at [EMAIL PROTECTED], but the address in no-longer valid. This is the program he uploaded to the ALF Library on 2003-01-19 : > > Volatility Breakout with Bollinger Bands > > Band= (BBandTop( C, 20, 2 ) - BBandBot( C, 20, 2)) / MA(Close, 20 ) * 100; > B= ((Close - BBandBot( Close, 20, 2 )) / (BBandTop( Close, 20, 2 ) - BBandBot( > Close, 20, 2 ))) * 100; > > Buy = band < 15 AND b > 95 AND MFI(10) > 60; > Sell = Cross(Close,SAR(0.01,0.2)); > Short = band < 15 AND b < 5 AND MFI(10) < 40; > Cover = Cross(SAR(0.01,0.2), Close); > > Filter = (band < 15 AND b > 95 AND MFI(10) > 60) OR (band < 15 AND b < 5 AND MFI(10) < 40); > > NumColumns = 1; > Column0 = Close; > > Could someone explain what B is? > > Highlighted are comments I don't understand, could anyone expand on them for me? > > Description: > > This Tradingsystem gives buy and short signals when after Bollinger Bands got very narrow they spread out and the Close touches the band (top or bottom). Additionally the MFI has to confirm this volatility breakout. But please be carefull because some stock suddenly change direction and in this case the really change! For more information please read "Bollinger on Bollinger Bands". > > Thanks, > > Bill > > > > --------------------------------- > Be a PS3 game guru. > Get your game face on with the latest PS3 news and previews at Yahoo! Games. >
