Stock Market Lingo

[Ruellit]

Good morning Pat,
Theoretically a stock price will bounce off the bollinger bands and spend most of its life in between the upper and lower bands. Breakouts can occur in either direction, but what is most desirable is a positive breakout. Other indicators that I watch when the price approaches the upper bollinger band are OBV (On Balance Volume), DMI (Directional Movement Indicator), RSI (Relative Strength Indicator), and the MACD. More can be read about these indicators here. http://stockcharts.com/education/glossary/index.html