Comments on: Using Bollinger Bands to Identify Reversal Points http://theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/ Information and resources for those looking to learn about trading and the markets Sat, 04 Feb 2012 14:17:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John http://theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10032 John Mon, 15 Oct 2007 21:59:15 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10032 Bollinger Bands use closing price. You could, of course, experiment with returns and see if they perform better for your needs. It really depends on what you want. The article seems to focus on using the Bands as definining a price probability range. That's not the way I look at them, though, and I don't think most others do either. Bollinger Bands use closing price.

You could, of course, experiment with returns and see if they perform better for your needs. It really depends on what you want. The article seems to focus on using the Bands as definining a price probability range. That’s not the way I look at them, though, and I don’t think most others do either.

]]> By: The Piker http://theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10031 The Piker Mon, 15 Oct 2007 20:04:02 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10031 Should BBs should be calculated with price or returns? Thanks! Should BBs should be calculated with price or returns?

Thanks!

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10030 John Mon, 15 Oct 2007 17:03:45 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10030 I'm not 100% sure what she means there, but my guess is that she's talking about how the Bands are calculated using price (closing price specifically), and not returns. In academia especially, volatility is generally measured in terms of period returns expressed in percentage terms. That aside, I wish she would have explained how she created her new Bands and that additional historgram indicator. I’m not 100% sure what she means there, but my guess is that she’s talking about how the Bands are calculated using price (closing price specifically), and not returns. In academia especially, volatility is generally measured in terms of period returns expressed in percentage terms. That aside, I wish she would have explained how she created her new Bands and that additional historgram indicator.

]]> By: The Piker http://theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10029 The Piker Mon, 15 Oct 2007 15:05:15 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/09/28/using-bollinger-bands-to-identify-reversal-points/#comment-10029 Would you please comment on a recent article about Bollinger Bands by Teresa Lo of PowerSwings.com? http://www.powerswings.com/2007/10/14/engineering-better-bollinger-bands/ Specifically, what does she means when she says that BBs are constructed wrong? Thanks! Would you please comment on a recent article about Bollinger Bands by Teresa Lo of PowerSwings.com?

http://www.powerswings.com/2007/10/14/engineering-better-bollinger-bands/

Specifically, what does she means when she says that BBs are constructed wrong?

Thanks!

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