Home
Up
New Page 50

Co-brand Partnerships

award-5.gif (6517 bytes)

topsite.gif (1668 bytes)

webfifty.gif (6027 bytes)


 
drop_center.gif (2753 bytes)


wpe1.jpg (2095 bytes)


FREE EMAIL
Email Login
Password
New Users Sign Up!
 
MAILING LIST
Sign up for our weekly e-mail newsletter!
Tell Me More!

Enter your e-mail address
subscribe
unsubscribe
NEWS SEARCH
WEB DIRECTORY
WEB SEARCH
 CITY GUIDES
search by:
 WEATHER

Current Weather
Enter Your City, State, or Zipcode:

   

MASTERING
THE TRADE

ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS
 

 
EARNINGS ESTIMATES

Enter Symbol

U.S. QUOTES

Enter Symbol:

U.S. CHARTS

Enter Symbol:

TECHNICAL OPINION

Enter Symbol:

CANADIAN CHARTS

Enter Symbol


 SEC FILINGS

Search For:
 

Company Name
Ticker Symbol

 BROKER RESEARCH
Exclusive Broker

Research
Enter Ticker

 

 

 

 

The Traders Wheel
2/8/99 by Alan Farley

Reading Bollinger Bands

Bollinger Bands add horsepower to any trading system. Just set the bands to the popular (20-bar 2-std deviation) inputs and you’ll locate many hidden support and resistance points. They’re also highly effective when examined in multiple time frames. Moving from weekly through intraday bands reveals a multi-trend view with excellent predictive value. Often, reversals can be predicted to within a single bar.

Someday another Edwards/Magee will come along and categorize the different band/price scenarios and assign predictability to each. Until then, these should help:

A. Location And Direction Determine Trading Phase:

1. UPPER VS LOWER ACTION

Location of price bars determines the strength of the current phase. Price within the upper band signifies power while price within the lower band signals weakness.

2. PRICE DIRECTION

Direction of price within the band identifies convergence and divergence with the current trend. Rising price within the lower band and falling price within the upper band signal divergence while rising within the upper and falling within the lower signal convergence.

3. TREND TESTING

The lower band, middle band (center average) and upper band represent support/resistance for the trend. Reversal off any band increases odds that price will expand in the reversed direction and return to the last band crossed or touched.

B. Penetration Through the Center Band Increases Directional Momentum:

1. CROSSING FROM BELOW CENTER TO ABOVE

Uptrend increase in strength. Observe directional movement of the upper band as price approaches.

2. CROSSING FROM ABOVE CENTER TO BELOW

Downtrend increase in weakness. Observe directional movement of the lower band as price approaches.

C. Bands Open In Response To Awakening Trend:

1. CLIMBING THE LADDER

If the angle of the upper band rises in response to approaching price, expect a series of upward price bars, each riding higher along the top band. This is an uptrend in progress. Conversely, price striking into a horizontal upper band predicts reversal and resistance.

2. THE SLIPPERY SLOPE

If the angle of the lower band falls in response to approaching price, expect a series of downward price bars, each pushing lower along the bottom band. This is a downtrend in progress. Conversely, price striking into a horizontal lower band predicts reversal and support.

ratl.gif (6776 bytes)
Bollinger Bands define natural extremes in trend development. As bands are hit, price often bounces backward until sufficient strength can push the band out of the way. Note how RATL’s action reverses immediately when price thrusts too far outside these well-defined barriers. The most sustainable trending occurs when price clings to the band’s edge.

 

Article contributed by The HARD Right Edge, which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. Article reprinted here with permission, which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. Article reprinted here with permission.
 
 

 

 
Search for it at the TulipSearch Open Directory
Investment Bookstore Investment Newsstand Market Mavens Report

TULIPS AND BEARS NETWORK SITES

 

FINANCE
Tulips and Bears
Contrarian Investing.com
Internet Stock Talk
Traders Message Boards
Traders Press Bookstore

NEWS AND INFORMATION
TulipsWeather
Freewarestop.com
TulipsMail
TulipsEspa�ol
TulipSearch
TulipNews
TulipCards
AllMusicSearch.com
City Guides
Travel Center
Bargain Bloodhound

WEBMASTER TOOLS

BecomeAnAffiliate.com
TulipDomains
GoSurfTo
TulipStats
TulipHost...coming soon
TulipTools...coming soon
...coming soon




Questions or Comments? Contact Us

Copyright � 1998-2002 Tulips and Bears LLC.
All Rights Reserved.  Republication of this material,
including posting to message boards or news groups,
without the prior written consent of Tulips and Bears LLC
is strictly prohibited.  'Tulips and Bears' is a registered trademark of Tulips and Bears LLC


Last modified: April 02, 2001

Published By Tulips and Bears LLC