QQQ Bollinger Band Buy Signal

The percentage of QQQ members trading below their respective lower Bollinger Band registered a mean reversion buy signal on the close of trading on 3/10/21.

Please note, Sentimentrader.com is not in the business of making specific trade recommendations. Our objective is to share historical insights, patterns, and data. 

Percent Below Lower Bollinger Band Buy Signal

The Bollinger Band signal seeks to identify instances in history when numerous Index members trading below their respective lower Bollinger Band cycles from high to low, and Index momentum turns positive. The model will issue an alert based upon the following conditions. 

 Signal Criteria

Condition1 = Percentage of members cross above 40. i.e., the reset 

Condition2 = Percentage of members cross below 0.9.

Condition3 = If Condition1 and 2, start days since true count

Condition4 = If Days since true count <= 5, and the QQQ 5-day rate of change is > 0%, then buy.

Let's take a look at the current chart and historical signal performance.

Chart and Signal Example

Please note that the chart's trading statistics are based on buying and selling the next day open.

Signal Performance

Please note, the trading statistics in the table are based on buying the signal date close. As one can see, the data does not have a long history, and a majority of signals occurred in a growth cycle. It will be interesting to see how this model performs if we are transitioning to a value cycle.