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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Gersh Avery who wrote (6211)3/10/2005 7:07:40 AM
From: Venditâ„¢  Respond to of 8752
 
Contracting Bollinger Bands indicate two things; the stock or index is in an accumulation cycle and pressure to make a major momentum move up or down out of the current range is growing.

Your observation is correct!

Reid



To: Gersh Avery who wrote (6211)3/10/2005 10:35:11 PM
From: Walkingshadow  Respond to of 8752
 
Hi Gersh,

I like to keep track of BB width. This can be a useful indicator, but has most value when the extremes are approached (i.e., highly contracted or highly expanded BBs).

You can plot this on Stockcharts.com.

stockcharts.com[w,a]daclyyay[dc][pd20,2!b200][vc60][iLg!Lyb20,2.0]&pref=G

I think it is helpful to examine carefully what happens when BBs get contracted or expanded, and why and how.

This is not helpful for all stocks or indexes. But I find it useful for QQQQ (and many others).

T