Acceleration Bands
Transcript of Acceleration Bands
A.C.E. InvestingAcceleration Bands
Course Instructors:Andrew Hart & Scott Downing
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Coaching ScheduleFocused Courses with Defined Goals
Price Action (Technical vs. Fundamental Analysis)
Building Your Trading Plan
Drawing Support & Resistance Lines
Williams Percent R Rules
Moving Averages
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2
3
4
5
Williams Percent R Scans
Acceleration Bands
Continuous Growth via Trade Journal
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7
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10Know Your Options (Intro to Options)
ACE Trading Strategies (Simple Options)
Strategy Session
Trading Plan
Indicator
Indicator
Indicator
Psychology
Options Selection
Strategy Session
Indicator
Indicator
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Why We Use Acceleration BandsAcceleration
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
KEY POINT Stocks that “Bubble Up”, eventually burst and break down, quickly.You can trade both sides of this move.
The Insight This indicator also tells you when the “Bubble” is bursting.Often happens before the true collapse.
The Beginning The Acceleration Bands allow you to spot when the trend is emerging before it becomes obvious to everyone else.
Bubbles A “Bubble” in a stock is often viewed as a negative.…BY TRADERS WHO MISSED THE BIG MOVE!
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Acceleration Bands: Rules
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.
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 entries and exits
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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 Exit
A close above the 10-bar Exponential Moving Average (EMA).This tends to be better than a close over the lower acceleration band.
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 entries and exits
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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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