A Technique for Better Bollinger Bands® Analysis
Bollinger Bands are by far one the best indicators for analysis of sideways price action in stocks, finding compression patterns early before High Frequency Trading HFT price surges, and visual assistance with Spatial Pattern Recognition Skills™ for beginning traders. However for clarity using the Bollinger Bandwidth Indicator is a better choice for Swing and Day Traders.
Spatial Pattern Recognition Skills are critical for stock traders. These skills take time and practice to hone to an intuitive level that professionals take for granted. Bollinger Bands are popular with beginning and novice traders, as the bands make it far easier to see the compression of a stock price trend, which is a common pattern prior to a huge breakout move by HFTs or Professional Traders.
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Martha Stokes CMT
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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