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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Michael Feldstein who wrote (13491)	5/12/1998 10:09:00 AM
From: Moominoid	Read Replies (2) \| Respond to of 213177

(Off-topic) David, I'm not very sophisticated when it comes to technical analysis. Could you please explain what Bollinger bands are and tell me where I can find out more about them? This is relevant because a lot of my posts in the near future will likely refer to them. Bollinger Bands are in effect what statisticians call a "confidence interval" around the moving average. In classic stats there is a 95% probability that the actual value of the variable will appear within the confidence interval. I haven't yet got my head around how to interpret the TA version in statistics but looking at charts the actual close price most of the time stays in this zone. When it hits the edge of the zone it tends to move in the other direction. The calculation is the moving average plus and minus two times the standard deviation of the price over the same period as the moving average is calculated. There is more on a site called A-Z of TA. Can't remember the URL. Normally people use a 20 day MA and Bollinger band. I have found 34 days is a better period for finding major turning points. I also have thought up by accident an alternative calculation that seems very useful. I have put both versions on the AAPL chart on my website. I've explained how this works on some of my recent posts (see my profile). I reckon this is a TA method that could make sense from an econometric point of view (many don't make sense). David