Honorary Hall of Fame Member
Bollinger Bands
Bollinger Bands [Trend Indicator]
Bollinger Bands
Bollinger Bands were invented by John Bollinger. Used to confirm trading signals, normally from a Momentum Indicator, the bands indicate overbought and oversold levels relative to a moving average.
Bollinger Bands are calculated at a specified number of standard deviations above and below the moving average, causing them to widen when prices are volatile and contract when prices are stable.
Bollinger originally used a 20 day simple moving average and set the bands at 2 standard deviations, suited to intermediate cycles.
Trading Signals
Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The first breakout is often a false move, preceding a strong trend in the opposite direction.
A move that starts at one band normally carries through to the other, in a ranging market.
A move outside the band indicates that the trend is strong and likely to continue - unless price quickly reverses.
A trend that hugs one band signals that the trend is strong and likely to continue. Wait for divergence on a Momentum Indicator to signal the end of a trend.
Permission to reproduce material on the Bollinger Bands indicator is conditional upon displaying a hyperlink to http://www.incrediblecharts.com/tech...nger_bands.htm on your website.
TSP Starter
Re: Bollinger Bands
Spaf
I am piddling around in Yahoo charts (not classic) with the Bollinger Bands.
I am just poking around and looking to see if I can see the overbought and sold TSP funds. I set the BBANDS to 50:1 based on the site below.
What are your thoughts, does this make sense?
Honorary Hall of Fame Member
Re: Bollinger Bands
MarkB,
See: http://www.incrediblecharts.com/tech...nger_bands.htm
I use www.stockcharts.com their BB are normally 20, 2
My trade and research platform at Scottrade prints out a narrative. I have found that using the Slow Stochastic will give me a early readout of when conditions are overbought / oversold.
Spaf
TSP Starter
Re: Bollinger Bands
Spaf
I saw the link to incrediblecharts and the reference to BB of 20 to 2 Yahoo BB are 20, 2 also.
I thought I posted a link on my first reply maybe I am loosing it.
I am posting it because it specifically is dealing with EFTs.
This referenced 1 sd above or below a 50 day trading range.
http://biz.yahoo.com/seekingalpha/07...6_id.html?.v=1
http://tickersense.typepad.com/ticker_sense/
Honorary Hall of Fame Member
Re: Bollinger Bands
MarkB,
OK! I see what you are doing!
B.B. set at 50,1 will give a O.B. / O.S. indication.
Congrats....
A different way to skin the cat!......Keeps one from buying high, unless they really want the risk. I'll put 50,1 in my notebook.
Thanks!
Spaf
PS: MarkB just showed me that 2,881 minds working at TSPTalk can be pretty awesome!!
Originally Posted by MarkB
Posting Permissions
|
S&P 500 (C fund) 1d 5d 3m 6m 1y 2y | Dow Completion (S fund)
| EFA (I fund) 1d 5d 3m 6m 1y 2y | Bonds (F fund)
|
LinkBack URL
About LinkBacks
Reply With Quote
Bookmarks