A.C.E. InvestingAcceleration Bands

Course Instructors:Andrew Hart & Scott Downing

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BigTrends Coaching

Access to Big Trends and its coaching services is provided foreducational and informational purposes only. The information presentedhere does not constitute a recommendation to buy or sell a particularinvestment. You are solely responsible for your investment decisions, andBigTrends and its staff are not responsible for any trades you choose tomake. Not all Big Trends products or services are appropriate for allinvestors. BigTrends does not provide personalized financial, tax or legaladvice. Please consult your tax consultant prior to making any investmentthat may impact your tax situation.

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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

1

2

3

4

5

Williams Percent R Scans

Acceleration Bands

Continuous Growth via Trade Journal

6

7

8

9

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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