Bands, envelopes and channels used in trading and investing. 27 Dec 2023, 5:48 pm

In his book Bollinger on Bollinger Bands published in 2001 John Bollinger starts chapter 6 “History” with the following statement. “The history og trading bands, envelopes, channels etc., is long and interesting”.

The chapter is interesting and a must read for those interested in trading bands. Among others, he mentions Bomar Bands, asymmetric trading bands, that contained 85 % of the price action over the past year where the middle of the band was a 21 day moving average. Bomar Bands are the bands that to my knowledge is most similar to my own percentilebands.

But in stead of a moving average as the middle of the band, I use a moving median (see the formulae in the Excel spread sheet). I find that more natural for percentile bands, that I compute for the 2.5%, 5%, 10 % and any other percentile.

Moving average envelopes are perhaps the simplest envelope you can think of, but there are a lot of similar indicators, for example

• Price Channel
• Average True Range Bands
• High Low Bands
• Bollinger Bands
• Percentile Bands
• Fractal Chaos Bands
• Acceleration Bands
• Donchian Channel
• Keltner Channel
• STARC Bands
• Prime Number Bands
• Valuation envelopes

Since there are a large number of ways to generate these bands, envelopes and channels, you may find others. If you don’t know the indicator search on the internet, on a video sharing plattform or ask one of the many AI driven digital assistants. One of our favourite indicators are Williams Fractal Chaos bands that is explained here. The reason is that these bands filter out noise and are often combined seamless with Williams Alligator indicator.

Of course, if you are a seasoned trader or investor and know the financial instrument that you invest in or trade, you may have found your own favourite indicators. Technical analysis is about probabilities, and finding an edge.

For additional information see this article on my site with identical title.

Average true range, RSI and the supertrend indicator. 17 Nov 2023, 2:58 pm

This Using Technical Indicators for Stocks and Options Trading playlist has a lot of videos explaining different technical indicators, some well known and others not so well know. The supertrend indicator is one fairly unknown indicator based on the more know Avwerage True Range (ATR) indicator. ATR is one of the first indicators that you should know, since it is an alternative to Parabolic SAR when sette stop loss points.

RSI is an other well known technical indicator. Here is one use of the indicator.

Here are two additional videos on the supertrend indicator.

Norwegian seafood stocks 15 Nov 2023, 11:00 am

Mixed technical picture.

SaxoBank SaxoTrader Go default settings. Daily data three months span.

Candle sticks price chart with Bollinger Bands and Williams alligator indicator. MACD and MACD histogram in lower chart.

Autos, technical picture. 13 Nov 2023, 9:00 am

Technical picture November 13 2023 of Tesla, Toyota, Volkswagen, Rolls Royce, Ferrari, Porsche and Nio.

Platform SaxoBank SaxoTrader Go, default settings, daily data 3 months. Se the education category for indicator explanation.

First chart candlestick price surrounded by Ichimoku indicator and cloud.

Second Chart candlesticks price with MACD and MACD histogram.

Golden Ocean Group and Star Bulk Carriers 9 Nov 2023, 10:58 am

Technical charts November 9 2023. Source Nasdaq.com where you also find fundamental information about the companies.

GOGL https://www.nasdaq.com/market-activity/stocks/gogl

SBLK https://www.nasdaq.com/market-activity/stocks/sblk/

One year periode, daily data and default settings for all indicators.

The first chart shows Williams fractal chaos bands with Williams alligator indicator. The second shart shows the Ichimoku indicator with the Ichimoku cloud. Indicator explanation in the education category.

When is it time to abandon a ship? I found this short video very informative. When Is It Time to Sell a Shipping Company? 3 Very Simple Indicators

Apple | The question for investors is how much to pay for the company. 3 Nov 2023, 2:47 pm

Toni Sacconaghi, Bernstein senior analyst, to break down Apple’s quarterly earnings results, which beat on top and bottom lines.

What does the technicals, more precisely the Ichimokou indcator tell you on weekly data and two year time frame?

The next picture shows the Williams fractal and alligator indicator over the same time span and frequency.

A. P. Møller Maersk B Technical picture 11.02.2023. 2 Nov 2023, 9:44 am

Background. Report: Containership Overcapacity Could Last to 2030 or Beyond

Source: SaxoBank SaxoTrader Go

Indicator explanation se the education category. Weekly data and 2 year interval.

The default settings are used for all indicators.

Candlestick price chart surrounded by Williams fractal indicator. Average true range, first chart below, and then the Directional Movement Indicator.

Candlestick price chart surrounded by Ichimoku Kinko Hyo indicator. Parabolic SAR (dotted line around the price) and MACD and MACD histogram.

Note: The Ichimoku cloud is often used as support or resistance area. See education videos in the education categori for details.

Nvidia – Technical picture November 1 2023. 1 Nov 2023, 3:37 pm

Source: Nasdaq.com.

Indicator explanation se the education category

Fundamental data here.

It is a 5 year chart with weekly data, Heikin Ashi candlesticks that filters out noise in candlesticks, fractal chaos band and alligator indicator. Volume below the chart.

The above chart shows Ichimoku clouds and Parabolic Sar (the dots around the Heikin Ashi candlesticks) and MACD and MACD histogram below.

Literature 31 Oct 2023, 3:19 pm

There is an endless literature on technical analysis and I do not even intend to write a complete list. I start with two of my favourite trading books, John Bollinger’s book where he explains his Bollinger Bands in detail, and then Price Headley’s book. Both have a related website, BollingerBands.com and BigTrends.com. Brian Shannen has also written som interesting books and have a related website, Alphatrends.net.

William J O’Neil is one of the most influential traders of the 20th century.  His book “How to Make Money in Stocks” that was first published in 1988 is often cited. He invented the CANSLIM Investing Methodology. Unfourtunately I have not read his books. His risk management system is well known and he writes about it in his books. What is CANSLIM? According to Investopedia “it is a system for selecting growth stocks by using a combination of fundamental and technical analysis techniques”.

Here are the books with some others explaining not so well known indicators.

• John A Bollinger (2001): Bollinger on Bollinger Bands
• Price Headley (2002): Big Trends In Trading: Strategies to Master Major Market
• William J O’Neil (2009): How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition
• William J O’Neil (2010): The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad
• Mr David Linton (2021): Cloud Charts: Trading Success with the Ichimoku Technique Paperback
• Balkrishna M. Sadekar (2013): How to Make Money Trading the Ichimoku System: Guide to Candlestick Cloud Charts
• Karen Péloille (1917): Karen Péloille (1917): Trading with Ichimoku: A practical guide to low-risk Ichimoku strategies
• Wesley Conrady (1923): Ichimoku Trading Book: A Comprehensive Guide To Japanese Charting Techniques
• Brian Shannon (2023): Maximum Trading Gains With Anchored VWAP – The Perfect Combination of Price, Time & Volume
• Brian Shannon (2008): Technical Analysis Using Multiple Timeframes
• Gary Edwin Anderson (2012): The Janus Factor
• Robert A. Levy (1968): The Relative Strength Concept of Common Stock Price Forecasting
• Prashant Shah (2021): Outperforming the Markets using Relative Strength And Breadth analysis : With live market data, Examples and Unique techniques

Heiken Ashi and Hull Candlesticks 31 Oct 2023, 2:53 pm

are important since they are often used in combinantion with the Ishimoku Kinko Hyo indicator and they filter oout noise. Here is one video that explains both type of candlesticks. 

Additional videos on Hull Candlesticks