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Re: NASARAVI post# 26

Monday, 07/23/2018 11:32:55 AM

Monday, July 23, 2018 11:32:55 AM

Post# of 207
BB BandWidth is declining for each A-D line through July 20, 2018
( except for the Dow A-D line )

www.stockcharts.com/school/doku.php?id=chart_school:technical_indicators:bollinger_band_width

NASARAVI - it is important to be looking ahead as you
watch how the charts for the A-D lines develop, so in that
topic please study this excerpt from the above Link
AND
learn from what actually takes place in the future for
the A-D line charts and their daily 50,2 BB Bandwidths

"The bands narrow as price flattens or moves within a relatively narrow range.
The theory is that periods of low volatility are followed by periods of high volatility.
Relatively narrow BandWidth (a.k.a. the Squeeze) can foreshadow a significant advance or decline.
After a Squeeze, a price surge and subsequent band break signal the start of a new move.
A new advance starts with a Squeeze and subsequent break above the upper band.
A new decline starts with a Squeeze and subsequent break below the lower band.

A squeeze followed by a break above the upper band is bullish, while a squeeze followed by a break below the lower band is bearish.
Be careful of head-fakes however.
Sometimes the first break fails to hold as prices reverse the other way.
Strong breaks hold and seldom look back. An upside breakout followed by an immediate pullback should serve as a warning."

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