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<x-rich>Like many of you, when I use oscillators, I can count on a block of
"preferite" indicators, which I use daily, and some other indicators, which,
for a reason or another, use not every day (a fashion matter? they didn't work?
could they be refined better? I don't know...). Bollinger Bands are among
these.
In any case, when I use this tool, I look at stocks whose BBW is lower than
certain level, for example less than 10, and with %B near 0 or 100, preferable
with an established divergence (stocks usually make a double, or ever a triple
divergence with Bollinger %B at [short-term] top). The search is better conducted with a scanning routine like Equis Metastock Explorer: here I search for all stocks of my database with BBW<<10 and %B<<15 or >85. When I get my "hot list", then I made my choice.
Alternatively, one could study an option strategy, buying one call and two puts when BBW is lower than 5 and %B is higher than 90 - obviously waiting for a price confirmation - and vice versa when %B is lower than 10. But I don't know, this isn't my field!
Here is attached a gif file showing the italian stock market (Mibtel) index. As you can see, every time BBW goes under 5 level, it's time to enter the market, and the direction is usually given by %B, better if a previous peak was established.
ciao!
</x-rich>
Attachment Converted: "c:\eudora\attach\Mibtel.gif"
<x-rich>
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
<bold>Gaetano Arnaldo Evangelista</bold> - BARI (Italy)
E-mail: ageitaly@xxxxxx
URL: http://www.geocities.com/wallstreet/8492
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%</x-rich>
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