then declined into late January/early February when the BLine generated
a Buy Signal following consolidation that tested the lower Keltner Band.
This is a
reverse picture of the Sell Trading Pattern in November in that the BLine
generated a good Buy Setup Signal, while the DBS5 turned up at a high
level, just below the Sell Line as indicated by the blue dot.
then moved higher into March where, once again, there was a 1-2 Sell Pattern
indicated by the red diamonds. The
DBS5 generated a Sell Setup Bar; then, the BLine generated a Sell Setup
Bar as prices were testing the upper Keltner Band. This Pattern was again
followed by a sizeable down move as prices first tested the lower Keltner
Band; then broke through it and continued lower to make a final bottom
with a 1-2 Buy Pattern of a DBS5 Buy Setup followed by a BLine Buy Setup,
indicated by the green diamonds.
can be used to see Support/Resistance levels as a market moves sideways;
and using more sizeable Standard Deviation moves away from the centerline
will often seem to stop a price move at a 6, 7, or 8 Standard Deviation
move, as occurred at the 1-2 Buy in late April.
Plot GE yourself
and change the Standard Deviation move from 1.95 to a 6 to see how it
stopped the down move.
PT indicators, such as Timing Bands and Trend Indicators would normally
be applied to the chart (or perhaps to another chart to prevent "chart