For example the RSI is considered at a possible overbought position when it reaches approximately 70 and can be categorized as a good buy anywhere between -xx up to, I normally suggest, 40. This of course is just a guide and can represent a general view - it does not necessarily provide a definite market answer but more of a text book answer.
Also bollinger bands do not necessarily mean a change in sentiment if it pops out the top or dips out the bottom, it is just a guide that collaborates many things; in fact most TA indicators (Volume, MA's, Volatility etc.).
I suggest you have a look at EXT's chart since the uptrend from the market fall, from about 80c. You will notice that the trend is very consistent bouncing off the bottom of the band and then dipping once it is at a fully overbought 'traders position'. You will see that even a top stock sometimes falls out of these mythical bands - LOL.
Hope this helps a tad,
Cheerio Nikess.
SFR Price at posting:
$3.84 Sentiment: None Disclosure: Not Held
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