Last Thursday the S&P500 True Range dropped below the lower bollinger band, that is 2x standard deviations away from the 20day simple moving average. On Friday, 1 day later, volume contracted below the lower bollinger band. This price range contraction followed by volume contraction bodes well for the market on shorter and longer time periods. Shorter time periods are calling for an average gain of 2.27% over a 5 to 10 day period at a 80 to 100% win rate.
Methodology:
Days in sample: 23291
Data set inception: 1928
Search for SPX Total Volume < lower bollinger band, when SPX price >200ma and True Range < lower bollinger band within the previous 10 trading days.
Number of occurrences since 1928: 5
Filter Duplicate Days: 0
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| SPX Close >200ma, Total Volume Below Lower Bollinger Band When True Range Below Lower Bollinger Band During Previous 10 Trading Days |
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