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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Michael G who wrote (12108)	10/21/1998 1:41:00 PM
From: johnlea	Read Replies (1) \| Respond to of 14631

ok michael, here you go. the key is the plotting "at standard deviations above and below a moving average". kind of hard to picture without some sort of visual, huh? The Bollinger Bands, developed by John Bollinger, are a type of envelope which allows you to shift moving averages up or down to create trading bands (envelopes). Bollinger Bands are plotted at Standard deviation(s) above and below a moving average. The standard deviation is a calculation that identifies a value that a majority of the plotted values are bounded by The characteristics of Bollinger Bands include: As volatility goes down, the bands tighten to indicate sharp price trends. Continuation of the trend is indicated when prices move outside the bands. Reversals in the trend are indicated by Bottoms/Tops outside of the bands followed by Bottoms/Tops inside the bands.