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Charting
Montr?alStock,
In this particular example the Bollinger band does not play any significant role ,but the eight-day expotential moving average, low and the
10 day expotential moving average high does .
Personally I do not like the MACD. The indicator is a lagging indicator, and for that reason I don't use it.
The Bollinger Band has so many different signals or patterns. Just as the candlestick charting has. What I do with the Bollinger Band is wait for a squeeze play, where the upper and lower bands squeeze together. Then I watch for the breakout up or down. When this happens, I start using the money flow Index. I use this index in a way that if the bands are moving up and the money flow Index is above 50 and rising this is what I call walking the bands. To confirm the money flow Index you would use the r- Square indicator. Anything above .27 and rising gives the money flow Index a 95% chance that it will keep rising. As the stock is rising, I start looking for reversal signals in a couple more software than I have. One could use overbought/ oversold indicators. But they can be deceiving.
I also have software that are very good trend indicators ,a lot better than the SAR indicator to me. It gives too many inaccurate signals. .
That's how I trade using the Bollinger bands.
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