Wednesday, March 21, 2007
Technical Indicators
CCT Bollinger Bands Histogram
Read More...The CCT Bollinger Band Oscillator, also sometimes referred to as the CCT Bollinger Band Oscillator, reconfigures John Bollinger's classic Bollinger Bands (envelopes plotted at two Standard Deviations above and below a moving average) by drawing two parallel lines replacing the erratic envelopes.
The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.
Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...
The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.
Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...
