Replies to post #24012 on ETF SWING & DAY TRADING

[gloe]

<i have not figured out when/how/why price hugs the line>
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If you mean hugging the outer band -
It means slow steady buying or selling. If you compare BB action to other indicators, you will find correlations. When prices are hugging upper BB, you wil see RSIs staying in upper ranges; stochastics and other oscillators staying in upper ranges; CCI 20 stays above the +100, etc. (opposite for hugging the lower BB.)

With the CCI, the indicator I am most familiar with, when we are in a long, for example, and the CCI gets above the +100, it indicates strength, and if prices can stay above +100 for a while we hold the trade, then exit if prices drop below +100, and wait for next set up, which can come very soon. Eg, prices go down to near the zero line and bounce off is a continuation trade, just like prices bouncing off middle BB is a continuation trade. (Zero line on CCI 20 is same as mid BB on standard setting - bascially, the 20 MA).

g