momentum breakout trading

Momentum Breakout Trading

A new look at an old

friend

The application of standard deviation bands, Bollinger’s,

toprice charts to give usbuy and

sell signals

Standard Deviation Bollinger Bands as taught by John Bollinger

Buy?

Sell?

??

?

Unfortunately, Bollinger’s Band settings, give us

NO objective buy and sell

signals.

Bollinger does suggest

using lots of

technical studies to get

the reversal points

A NORMAL PRICEDISTRIBUTION MEANS THAT

MOST OF THE PRICES ARECLOSE TO THE AVERAGE WITHFEW PRICES AT ONE EXTREME

OR ANOTHER

AVERAGE PRICE

OR“MEAN”

STANDARD DEVIATION

Standard Deviation Bell CurveBollinger’s Bands

Our MomentumBreak out bands

“MOBO”

BREAKOUTAREABUY

BREAKOUTAREASELL

AVERAGEPRICE

TIGHTER BANS TO SHOW THE BREAKOUT OF PRICE

DAILY CHARTS

MOBOBANDS

J. BOLLINGER BANDS

LONG

SHORT

LONG

ABOVE MOBO BUYBELOW MOBO SELL

MOBO BREAKOUT

MOBO SUPPORT

SYMC

SELL

SELL

BUY

GE

RSTI

MOBOBUY

BREAKOUT

MOBOSELL

BREAKOUT

ERTS

ERTS

50 Sma

15 Sma

ERTSTwo Day Chart

No Sell Signals

DJ-30 2 DAY CHART

DJ-30 WEEKLY

DJ-30 MONTHLY

DJ-30 QUARTERLY

DJ-30 Hourly

DJ-30 HOURLY

BLUE ‘MEAN’ PRICE AVERAGE

DJ-30 HALF HOUR WITH BLUE ‘MEAN’

DJ-30 FIVE MINUTEWITH BLUE ‘MEAN’

DJ-30 ONE MINUTEWITH BLUE ‘MEAN’

SELL

U.S. DOLLAR DAILY

GOLD DAILYWITH BLUE ‘MEAN’

GOLD DAILY WITH TECHNCIALS ( SOAP)

DJ-30 DAILY WITH TECHNCIALS ( SOAP)

EELN WITH MOBO AND SOAP

100 Sma

BUY