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Technology Stocks : TIBCO Software Inc - ( Nasdaq - TIBX )

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To: dhanam who wrote (65)7/30/1999 4:40:00 PM
From: Joe13579  Read Replies (1) of 289
 
The bollinger bands are one of many indicators that TA's use to analyze stocks. I really don't do too much analysis (nor can I tell you how they derive the bollinger bands), but I have noticed on too many occasions (after being forewarned by TA's) that when the BB tighten then there's a good chance that there will be a big movement in the stock price, either up or down. In this case it happened again - I never believed it before. FWIW, when the bollinger bands are further apart then the chances of a large break-out are smaller (that's assuming there's no significant news to affect it). It's possible that much of the buying today was based on TA.

I don't know how options can affect a stock, perhaps the options had something to do with it. If anyone out there knows, feel free to add your two cents.
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