Mikula Forecasting Company
Mikula Forecasting Company
The picture below shows two indicators, the Bollinger Plus and the
Bollinger Bandwidth. The Bollinger Plus indicator has has several extra
standard deviation lines above and below the Bollinger Bands middle line. The
normal use of the Bollinger Plus is to set the lines to 1 standard deviation
increments so the lines represent 1, 2, 3, and 4 standard deviations above and
below the middle line. You can judge the strength of the trend based on how
many standard deviations above or below the middle line that teh price moves.
You can also location time periods of breakouts when the Bollinger Plus lines
all group together.
The next indicator Bollinger Bandwidth shows the
distance between the upper and lower Bollinger bands. When the bandwidth is
high the market is usually going to start a sideways conjestions area. When the
bandwidth is low the market is usually going to start a market breakout.
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