Band Break System BBS

BBS Chart Template part 2

BBS - Intro - Results - Template - Basic - More_money - Selecting_stocks

Chart Template PART1 - PART2

We will now add a couple of extra indicators that will help you to make decisions to override the BBS signal.

First we add the S10_RSI_Xtreme indicator in a separate window. This is a fast short term indicator. Short term reversals are nicely indicated with extreme high (100) or low (0) values. It can be used to find entry points in an ongoing medium to longer term trend. Or it can be used as an early exit signal after a medium term trend move.

Keep in mind that the start of medium term reversals will always be started from an extreme low (or high for a short position) of this indicator.

The S10_RSI_Xtreme indicator uses 3 parameters. The RSI period, a look back period and a summing average. The defaults used are respectively: 21, 10 and 5.

Now we add another sub window with a standard stochastic oscillator (blue curve) for the medium term with the default time periods equaling 30 and a 5 period slowing.

And finally we add in the same sub window the S10_Stoch_Xtreme indicator (red curve).

The S10_Stoch_Xtreme indicator uses 3 parameters. A data average, a look back period and a summing average. The defaults used are respectively: 4, 8 and 4.

The 30 time periods standard stochastic with a 5 periods slowing is a slow stochastic. This allows you more easily finding the turning points for the medium term moves when moving up from the 0 to the 100 level and the other way around.

The S10_Stoch_Xtreme indicator gives you an extreme clear vision of the medium term reversal points. Good to know is that automatic trading based on this indicator only is profitable. In BBS you can use it as an ultimate warning to get out of a trade.

BBS Chart Template PREVIOUS -Next BBS Basic Trading

STOCATA Stocks Technical Analysis HOME