Amey from The Wild Investor has been a rather frequent guest blogger (see previous posts) and for good reason...he knows what he's talking about! Over the weekend he and I were talking about technical indicators and I broke down and told him I know "less then nothing about Bollinger Bands". He laughed and broke them down for me, and afterwards I told him to write a guest blog so YOU could learn about them as well! Enjoy the article, feel free to comment with your insights, and visit The Wild Investor and SpeakStocks.com.
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One reason I prefer technical over fundamental analysis is that it is more visually appealing. By quickly glancing at a stock’s chart, I can tell whether I want to buy it, sell it, or what the price targets are.
I look at stock trading as an art, and like any craft we must constantly tweak and perfect it to achieve the most optimal outcome. As a die-hard user of technical analysis, I am always trying out different indicators, seeing which ones work for my trading strategy, and dropping the ones that do not. I typically like to keep my charts clean; otherwise, I get lost and lose focus.
Continue reading "Bollinger Bands 101 – How To Measure Volatility"
