Turtle Bands – Bearish

A popular trading method developed by Richard Dennis and William Eckhardt is the Turtle Trading Method.

It is a trend-following trading method that relies on breakouts of the price. Turtle trading uses volatility-based trailing stop-losses.

Click here to learn about the Turtle trading method.

Traders can use this indicator to trade breakout prices. It shows the bearish turtle method trade is triggered whenever the prices have fallen into the 20 days low territory, i.e. when the lower band is falling. The white line, which is the ATR line, can be used to set a stop-loss for the bearish turtle method trade.

ATR (Average True Range) indicator measures volatility. Over a period of time, the ATR line captures the fluctuations of an instrument. Depending on risk appetite, the ATR multiplier can be increased.

• Line 1 is the lower band
• Line 2 is the upper band
• Line3 ATR multiplier line

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.