A.C.E.
Investing
Acceleration Bands
Course Instructors:
Andrew Hart & Scott Downing
BigTrends Coaching
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Coaching Schedule
Focused Courses with Defined Goals
1 Price Action (Technical vs. Fundamental Analysis) Strategy Session
2 Building Your Trading Plan Trading Plan
3 Drawing Support & Resistance Lines Indicator
4 Williams Percent R Rules Indicator
5 Moving Averages Indicator
6 Williams Percent R Scans Indicator
7 Acceleration Bands Indicator
8 Continuous Growth via Trade Journal Psychology
9 Know Your Options (Intro to Options) Options Selection
10 ACE Trading Strategies (Simple Options) Strategy Session
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Why We Use Acceleration Bands
Acceleration
Acceleration – find trends that are starting
to speed up for faster profits
We started trading with moving averages
We quickly noticed that the best stocks
never re-test major moving averages
We liked the concept of adaptive bands
that could adjust based on more recent
price action
Acceleration Bands should encompass
95% of price action
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Why We Use Acceleration Bands
Acceleration
If Acceleration Bands encompass 95%
of the price action, we like to catch the
other 5% move.
This allows us to trade the statistically
rare events for big profits.
Famed Money Manager George Soros
stated that these unexpected moves,
or “fat tails”, was where he made the
most money.
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Trading the Bubbles
Bubbles A “Bubble” in a stock is often viewed as a negative.
…BY TRADERS WHO MISSED THE BIG MOVE!
The Beginning The Acceleration Bands allow you to spot when the trend is
emerging before it becomes obvious to everyone else.
The Insight This indicator also tells you when the “Bubble” is bursting.
Often happens before the true collapse.
KEY POINT Stocks that “Bubble Up”, eventually burst and break down, quickly.
You can trade both sides of this move.
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Acceleration Bands: Rules
Bullish entries and exits
Bullish Entry
Look for Two (2) closes in a row above the upper 20-bar Acceleration Band.
For strongest trends, second close is higher than the high of the first bar.
Bullish Exit
A close below the 10-bar Exponential Moving Average (EMA).
This tends to be better than a close under the upper acceleration band.
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Acceleration Bands: Google (GOOG) Daily Bullish
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Acceleration Bands: US Oil (USO) Weekly Bullish
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Acceleration Bands: Intuitive Surgical (ISRG) Weekly Bullish
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Acceleration Bands: Rules
Bearish entries and exits
Bearish Entry
Look for Two (2) closes in a row below the lower 20-bar Acceleration Band.
For strongest trends, second close is lower than the low of the first bar.
Bearish Exit
A close above the 10-bar Exponential Moving Average (EMA).
This tends to be better than a close over the lower acceleration band.
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Acceleration Bands: Google (GOOG) Daily Bearish
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Acceleration Bands: US Oil Fund (USO) Daily Bearish
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Acceleration Bands: Citi (C) – Weekly Bear
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Acceleration Bands: Lehman Bros (LEH) – Daily Bear
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Acceleration Bands: Research in Motion (RIMM) - Monthly
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Do You Have
Any
Questions?
Type your questions in the chat box.
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