Replies to post #94170 on Cascadia Investments (CDIV)

[Maestro208]

powerade1: "bollies" refer to the Bollinger Bands, a TA (technical analysis) indicator commonly used to gauge whether or not a stock has room to go up (if it's near the lower band) or it should retrace back down (if it's near, or above, the upper band). They are kind of like upper and lower parameters for highs and lows, similar to upper and lower quartiles in a box-and-whisker plot, and the stock trades inside of the inter-quartile range. Sorry if that's still vague - I'm a math teacher, and I understand because nobody usually remembers those types of measures of variation! LOL! Check 'em out here for a good visual and further description: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:bollinger_bands

I refer to these BBs (or "bollies") as a secondary part of analyzing stock charts. Basically, if today's candle is touching or near the lower band, it is highly likely to go up from there soon, and vice versa from the upper band and likely going down from there. They appear as strong areas of support and resistance under typical circumstances, although they are backward-looking by nature. And please note that these float lockdown plays do not behave like typical stocks, though, and also that the BBs shrink and expand based on standard deviation calculations, so they can adjust to a stock with strong momentum. Thus, they are by no means an "end-all" nor should they be your primary "go-to" indicator when looking at stocks, imo. Great and useful for a quick visual, though. Good luck!