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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: StockMan who wrote (46287)	1/24/1998 10:25:00 AM
From: Jim McMannis	Respond to of 186894

Stockman, RE: "When I look at it there doesn't appear to be a correlation between bollinger bands and ma? Are you linking two seperate methods that should not be linked? Bollinger bands are calculated and ploted based a set standard deviation on a moving average. Most commonly used is the 20 day simple moving average. The bands are plots of 2 standard deviations above and below the moving average. You can set the ma and no. of standard deviations to any value you want. I typically use a 55 day moving average and 2.55 standard deviations and even a 90 day ma and 3 staardard deviations when I want a longer perspective...also depends on the security or index you are applying them to. Back to the 2-20 BB's. A bullish scenario exists with the price data penetrates the 20 day moving average (middle band) and runs up to touch the upper band... then if the price data starts to trade within the upper channel a bullish trend may be forming.. This coupled with a positive 20 day moving average is a bullish trending situation should the price start to "ride up the upper channel. This is what Intel appears to be doing. Of course you'll need other indicators to confirm this. Get a good charting program...if you don't have one already. Charts on the net lack the flexibility you need. Jim