Charting and Historical Backtesting Software by
Ashkon Technology LLC
Bollinger Bands Interpretation:
Stock
prices tend to stay within the upper and lower band.
Sharp price changes
tend to occur after the bands tighten.
When prices move
outside the bands, a continuation of the current trend will continue.
Bottoms and tops
made outside the bands are usually followed by bottoms and tops made
inside the bands.
A move that
originates at one band tends to go all the way to the other band.
Bollinger Bands Calculation:
Parameters: D - standard deviation, n - number of
days
where MA is a simple moving average
