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Alberto
Yours is a question that I have not considered. Up until now, I have been
satisfied with the preset defaults.
MS Boll dev. = 200%
IQChart Boll dev. = 150
Both seem to work fine for me.
To check further I visited:
http://www.bollingerbands.com/bbands.asp
...where the Bollinger deviations of 350 to 400% are said to be the most
popular.
I attended an Equis seminar several months ago, where John Bollinger explained
his Bollinger Bands trading system, using the MS money flow index (MFI).
There is nothing in my notes, about the importance of a specific deviation.
John did say that he preferred an unweighted 20 period moving average.
My personal opinion is that 90% is so narrow that the price bars tend to fall
outside the bands more than I am used to seeing.
What you can successfully use is more important than what others are using.
As each issue has its own characteristics, and the market is always changing,
you are wise to keep an open mind, and to try different values, from time to
time. Go for it! :^)
Based on John Bollinger's trading suggestions, the MFI is not yet confirming
our two day market rally.
Larry
San Juan Capistrano
Alberto Torchio wrote:
> Dear Listmembers,
>
> I have been asked a simple question on Bollinger Bands and was unable to
> answer...
> Could anyone tell me the number of standard deviations allowing to contain
> within the bands 90% of price data?
>
> Alberto Torchio
> Torino, Italy
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