I have a question regarding Bollinger Bands. Is there such a thing as Double Bollinger Bands? That is when the stock goes down and touches the first Bollinger Band ring, you buy, but if the stock does not reverse itself and continues downward, you sell out when it hits the second Bollinger Band ring.

Jim Sogi writes:

Buy and Read John's Book, Bollinger Bands by Bollinger. He explains all the various signals there. He's a member of the list, so I will tout for him. My only comment, is that like other indicators, they are retrospective. They are better than most because of the prospective expectation of persistence of volatility. My theory as I have propounded here is that concurrent market internals are helpful if not better than many retrospective guides, and even prospective guides from prior data used alone especially on a short term horizon or at least for execution.





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1 Comment so far

  1. Penn State football email list on March 29, 2009 1:43 pm

    My technical analysis package allows me to specify the number of standard deviations for the Bollinger Bands. I believe the default is two. It would be easy enough to add a second set of bands at four SDs.

    That being said, I'm a reversion-to-the-mean trader. ("The trend is your friend — until it ends.") I'm buying and selling stuff that looks way overdone. I don't use B-Bands, but if I did and liked them at the first BB, I'd love them at the second BB. I wouldn't be looking to puke them there, I'd be looking to add more.


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