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A.C.E. InvestingAcceleration Bands
Course Instructors: Andrew Hart & Scott Downing
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Coaching ScheduleFocused Courses with Defined Goals 1 2 3 4 5 6 7 8 9 10 Price Action (Technical vs. Fundamental Analysis) Building Your Trading Plan Drawing Support & Resistance Lines Williams Percent R Rules Moving Averages Williams Percent R Scans Acceleration Bands Continuous Growth via Trade Journal Know Your Options (Intro to Options) ACE Trading Strategies (Simple Options)Strategy Session Trading Plan Indicator Indicator Indicator Indicator Indicator Psychology Options Selection Strategy Session
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
Why We Use Acceleration BandsAcceleration 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.
Trading the BubblesBubbles A Bubble in a stock is often viewed as a negative. BY TRADERS WHO MISSED THE BIG MOVE!
The Acceleration Bands allow you to spot when the trend is emerging before it becomes obvious to everyone else.
This indicator also tells you when the Bubble is bursting. Often happens before the true collapse.
Stocks that Bubble Up, eventually burst and break down, quickly. You can trade both sides of this move.
Acceleration Bands: RulesBullish entries and exits
Bullish EntryLook 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 ExitA close below the 10-bar Exponential Moving Average (EMA). This tends to be better than a close under the upper acceleration band.
Acceleration Bands: Google (GOOG) Daily Bullish
Acceleration Bands: US Oil (USO) Weekly BullishPage 9
Acceleration Bands: Intuitive Surgical (ISRG) Weekly Bullish
Acceleration Bands: RulesBearish entries and exits
Bearish EntryLook 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 ExitA close above the 10-bar Exponential Moving Average (EMA). This tends to be better than a close over the lower acceleration band.
Acceleration Bands: Google (GOOG) Daily Bearish
Acceleration Bands: US Oil Fund (USO) Daily Bearish
Acceleration Bands: Citi (C) Weekly Bear
Acceleration Bands: Lehman Bros (LEH) Daily Bear
Acceleration Bands: Research in Motion (RIMM) - Monthly
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