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good old BB
old article at VTrader site.
hmm, not bad to remember
Bollinger Bands Summary
Interpretation Description Results
1. Volatility
Bands widen Increase in volatility
Bands shrink Decrease in volatility
2. Consolidation – “Squeeze” When bands shrink tightly Breakout eminent
3. Exuberance of Current Trend – “Bulge” Bands widen too much A reversal is in the works
4. Continuation Price action closes above upper band/below lower band in subsequent sessions Continuation of upward/downward trend
Signals
1. Double Top
Peak closes above upper band then next peak closes below upper band Sell setup or signal
2. Double Bottom
Low closes below bottom band then next low closes above bottom band Buy setup or signal
Last edited by fxbs; 04-26-2007 at 03:34 AM.
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Linear Mode
