Wednesday, September 09, 2009 10:03:49 AM
TCK CHART AND NEW THEORY:
Hello Folks,
Just thought I might throw up a TCK chart and mention something I have noticed alot with reference with Bollinger Bands. Many of us look for situations where we see the BB getting tight. I especially love this situation as an option trader because I really want to see PPS movement.
It's common knowledge that the technicals say when we see the BB get tight we can soon expect a price explosion. But most folks say that we just don't know which direction. This very well may be true but more times than not I have found the following to hold true:
1.) Look for the squeeze
2.) Wait for the headfake to complete - This could be either up or down
3.) Buy on the opposite direction shortly after the headfake for the true PPS explosion.
Look to the TCK chart for what I believe to be this situation.
Hello Folks,
Just thought I might throw up a TCK chart and mention something I have noticed alot with reference with Bollinger Bands. Many of us look for situations where we see the BB getting tight. I especially love this situation as an option trader because I really want to see PPS movement.
It's common knowledge that the technicals say when we see the BB get tight we can soon expect a price explosion. But most folks say that we just don't know which direction. This very well may be true but more times than not I have found the following to hold true:
1.) Look for the squeeze
2.) Wait for the headfake to complete - This could be either up or down
3.) Buy on the opposite direction shortly after the headfake for the true PPS explosion.
Look to the TCK chart for what I believe to be this situation.
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