TIGERSOFT's PRICE BANDS
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             TigerSoft invented fixed percentage interval Price Bands around a Moving Average
             back in 1981.   Now they are used widely by many chartists and technicians.  
             Our bands originally were fixed percentage intervals above and below the
             21-day ma.   Since then we have found it useful to put bands above 7-hour,
             35-hours, 65-day and 52 week moving averages.  Here we focus on the
             bands above and below the 21-day ma which are used in our daily charts.   

             The bands represent typical over-bought and over-sold conditions.  Reversals
             usually take place at the bands, but not always.  We pay close attention
             when the bands do not bring reversals.  Just as Sherlock Homes heeded
             the dog that did not bark, we are alerted by bands that do not bring reversals..         

                                             Band Breakouts/Breakdowns

              When prices move past the bands, the stock is either accelerating up or
             accelerating down.  Usually this is a break-away move if there are major Buys
             (B10, B12, B20 or B24) and the TigerSoft Accumulation and TigerSoft Closing
             Power are confirms the moves.




           
                                Prices Ride The Outer Rail: Powerful Momentum Up

              Often you will see prices ride the outer band up.  Internals are usually very
              good.   You will also see Tiger/Peerless buys at this time if prices are apt to
              continue to advance.  With stocks we would look for B12 and B20 signals,
              particularly..



                              Prices Ride The Outer Rail: Powerful Momentum Down



             Most of the Tiger and Peerless signals are derived from where the index, stock
             or commodity is in relation to the price bands and how strong (Blue Accumulation
             and Insider Buying) or weak (Red Distribution or Insider Selling) the stock is.
             The internal strength indicators are the bottom of the Tigersoft or Peerless chart
             are constantly measured up against the stock's price action and the ratio of
             the stock's closing price and its 21-day ma.   Thus, we simultaneously employ both
             momentum and divergence analysis in generating automatic signals.

                                               TigerSoft Sell S9s Show Stock IP21 NNCs.

             See more examples at http://tigersoft.com/--1--/52109index.html



  
                                                     HOW THE BANDS ARE SET

             In 1981, the DJI's upper and lower bands were set at 4% and then 3 1/2%. 
             You can see how well the bands showed the path of the DJI back in 1981. 
             Only in August did the DJI  go beyond the boundaries of the lower band. 
             The bands, in effect, captured and bracketted about 93%-95% of the trading.
             This is the basis of the current optimization of bands, done with
             PEERCOMM + Tiger Stocks + Optimize Bands and Drop Earlier Data.

                  At the time, on an Apple II+, we considered 8% band the right width for
                  most DJI-30 stocks.  A typical NASDAQ stock was about twice as
                  volatile.   So we assigned 5% band to most NASDAQ stocks. 
                  This worked fairly well in 1981 for most stocks.  See AA and AMAT below.


.  




                Then, in August 1982, prices moved way past the normal upper bands. 
                The subsequent bull market showed the importance of such breakouts.
                It was also clear that high volume on the breakouts was important.
                In AAPL's case the OBV (On-Balance-Volume Line) made a new high
                in mid August, long before prices did.  Volume led prices.  In BAC's
                case, the Tiger Accumulation Index (which we invented in 1981, too)
                switched from negative to steadily positive for a BAC.  Big institutions
                were again buying the stock.

            The greater memory of the IBM PC and then Windows in the 1990s
            allowed us to provide ways for the users to redraw -optimize bands.
            The best fitting lower band did not have to be the same width as the best
            fitting upper band. Below is the optimized band chart for IBM for 1994.
            In the table below, see how the Optimized bands around the 21-day ma
            have changed from year to year. 

                  > The upper bands have ranged from  +2.7% (1991) to +18% (2002). 
                  > The upper band does widen in a bull market but it has tended to rise
            even more in a bear market.
                  > The lower bands have ranged from  +2.4% (1985) to +18,5% (1987).
                  > When the lower band % is low, it shows a bull market environment. 
                  > When the lower band is high, a bear market is signified.
                  > When the upper band's % is much greater than the lower band's,
                 it is a sign of a new bull market (1982 -1984, 1991, 1995 and 2009.
            

IBM PRICE BANDS AROUND 21-DMA
==============================
                 Upper       Lower 
                 Band         Band   
                 ------------------             
1980         +7.5%       -8.0% (mini-bear market)
1981         +5.0%       -5.5%
1982         +9.5%       -5.5%  (start of bull market)      
1983         +7.0%       -4.5%   (bull market)   
1984         +6.0%       -4.8%
1985         +4.1%       -2.4%  (bull  market)
1986         +8.5%       -5.5%  (bull market)
1987         +5.5%        -18.5%  (bear market)
1988         +5.5%        -4.2%
1989         +4.3%        -3.5%    
1990         +4.3%        -7.5% (bear market)
1991         +7.0%        -3.8% (start of bull market)
1992         +2.7%        -3.2%
1993         +2.8%        -2.3%
1994         +3.0%        -3.6%
1995         +4.0%        -2.0%
1996         +4.0%        -3.8%
1997         +6.0%        -6.0%
1998       +10.5%       -8.5% (mini-bear market)
1999       +14.5%     -13.0% (bear market coming)
2000        +10.5%     -13.0% (bear market)
2001        +15.5%     -12.0% (bear market)
2002        +18.0%     -14.0% (bear market)
2003          +6.0%        -6.0%
2004          +5.5%       -4.6%
2005          +7.0%       -6.5%
2006          +6.0%       -3.7%
2007          +6.0%       -7.5% (start of bear market)
2008          +6.5%      -17.0%  (bear market)
2009          +9.0%       -6.0%  (start of bull market)
2010          +4.5%        -4.8%
2011          +6.5%        -7.0%
2012          +4.3%        -5.5%
2012-2013 +4.6%      -6.0%

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