That's a neat trick there Fid, I see what you're doing there. Very smart stuff.
I was asked this morning why do I mainly use Bollie Bands to post on HC but hardly use them in the groups stuff? I simply find describing the price action so easy with bollies as they are simple to read and you're not drawing in biased based trendlines. And the beauty is that you don't need to be a many hours a day TA nerd (me) to see in 10 seconds where the immediate momentum is going. With just the basic knowledge everyone can read BB's.
The IMU current daily chart is a great example and quite the thing of beauty (except it's going the wrong way) and here's why.
See the way the candles are just printing between the bollie median (20ema) and the lower bollie band? And since 21st March has only spiked the bollie median twice before getting a smacking. In John Bollingers book that is described as signalling real weakness.Therefore how could you ever see an investment opportunity until that pattern reversed?
And to then see when there were three opportunities presented (circled yellow), once there were wicks outside of the upper bollie band it was time to close and sellers flooded in. (something to remember next time)
Ideally this (below) is what holders want to see with all the trading going on above the bollie median and buying opportunities when it dipped below. That's because the stock was in an uptrend. This stock is providing buying opps for great investment rather than IMU (downtrend) providing selling opps whenever it spikes above the bollie median (very important to recognise).
Bollie bands very clearly display a stock that is offering buying opportunities or unfortunately a stock that is offering selling opportunities.
Which one would you prefer to be in?
Cheers
(20min delay)