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Bollinger Bands
post Posted: Oct 22 2009, 03:06 PM
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In Reply To: BSA's post @ Oct 22 2009, 02:49 PM

Yes - from the OP home brewery laugh.gif
Then you'll be lagging as much as the BB's.

post Posted: Oct 22 2009, 02:49 PM
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In Reply To: SHAGS's post @ Oct 22 2009, 02:48 PM

Try bourbon smile.gif


post Posted: Oct 22 2009, 02:48 PM
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In Reply To: veeone's post @ Oct 22 2009, 02:34 PM

Thanks so much for your explanation, I was beginning to think I should stop drinking tea when day trading and take up champagne.

post Posted: Oct 22 2009, 02:37 PM
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In Reply To: arty's post @ Oct 22 2009, 01:47 PM

far better indicators have been developed

If by "better" you mean "equally lagging" then I'd agree with you Arty! biggrin.gif

post Posted: Oct 22 2009, 02:34 PM
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In Reply To: BSA's post @ Oct 22 2009, 02:30 PM

Bollinger Bans were developed by John Bollinger. They are a set of bands that are plotted at 2 standard deviations above and below an exponential moving average (20-day is widely used) and are displayed over a stock's price chart. Using 2 standard deviations guarantees 95% of the price data will lay between the bands. Since the bands are plotted at standard deviation levels, they are self-adjusting. When a stock becomes more volatile, the bands widen to give the stock more “room to move” within the bands. When a stock meanders around with little day-to-day movement, the bands contract.

Because of the tendency for a stock to stay within the bands, prices are considered overbought when they reach the upper band and oversold when they reach the lower band.

Bollinger offers the following characteristics:

• Expect sharp prices changes after volatility lessens and the bands narrow.
• When a stock moves outside the bands, expect the trend to continue.
• A reversal usually occurs after a bottom or top is made outside the bands and then the underlying issue moves back inside the bands.
• Prices tend to move from one band to the other, so this can aid in projecting price targets.

post Posted: Oct 22 2009, 02:30 PM
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Bollinger Bands??????

Is that the little wire cage that holds the cork in to a bottle of champagne blink.gif

But I could be wrong tongue.gif

Sorry Shags I only have a basic knowledge of them and do not use them myself.




post Posted: Oct 22 2009, 01:47 PM
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In Reply To: SHAGS's post @ Oct 22 2009, 01:16 PM


straight from the creator.

It is important to be aware that it's a lagging indicator, telling you about 2 weeks after the event what has happened.
John Bollinger himself recommended it as a confirming indicator, to be used when trying to follow a trend.

Since its publication (decades ago) far better indicators have been developed. e.g. google "Keltner".

I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
post Posted: Oct 22 2009, 01:21 PM
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In Reply To: SHAGS's post @ Oct 22 2009, 01:16 PM

It's the line of moisture you get on your champagne glass when drinking this lovely beverage tongue.gif

Sorry, back to the intelligent conversation....

post Posted: Oct 22 2009, 01:16 PM
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Does anyone have an insight into Bollinger Bands??????


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