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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic
INTC 44.06-3.2%Jan 12 3:59 PM EST

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To: W. Clinton Terry who wrote (7974)8/19/1997 3:55:00 PM
From: JPR   of 27012
 
Hi Clinton,

Bollinger Bands should always be used in conjunction with RSI - Relative Strength Index.. BB are plotted 1 1/2, 2, 2 1/2 standard deviations from the moving average. 1 1/2 for say 10 dayMA, 2 for 20 DMA, 2 1/2 for 50DMA.
When price touches the upper or lower bands it is an indication of continuation of the trend. This is where RSI comes. RSI is an excellent indicator of Overbought and oversold conditions. If the price touches the upper BB and the RSI is above 70 it is an overbought condition. When the RSI traces back down to 70 and below, it gives a sell signal.
When the price touches the lower BB and the RSI is below 30, it is an oversold condition. When the RSI traces back up to 30 and above, it gives a buy signal.

Hope I made some sense.

Paul
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