Band Cap

Here are some more information for Band Cap:

Bollinger bands are probably my favorite technical indicator. I have been trading stocks for twenty plus years now, and I use Bollinger bands to some extent in EVERY trade I make. They bands were of course developed by the highly regarded technician, John Bollinger. You can find numerous High Quality books and writings of his. I use Bollinger bands because they never seem to fail.

Bollinger band are simply a high and low ranging channel on a stock chart. The inner workings of the calculations are beyond the scope of this article. Stock prices rarely break through the upper and lower ranges of the moving averages. When they do, you can readily expect that eh stock price will Come Back into the channel in a prompt manner.

Since I am mainly a swing trader (trades lasting 3-15 days), I use the indicator based on an hourly chart. The nice thing is that no matter your trading horizon, Bollinger bands can be used in your trading decisions. You will find most stock market charting software has them as a choice of technical indicators. In general I would recommend just staying with the parameters of the stock software when placing the bands on your chart. An advanced trader can change the inner settings, but that really is not necessary for even the intermediate trader.

My main strategy to find good stock choice is to screen for stocks that are outside of there current upper or lower bounds and place a trade for a reversal. You may do this by purchasing the stock (going long) or shorting the stock. Another choice would be to use stock options to accomplish the same thing. This is the approach I mainly choose. Stock options can be risky though and I would never advise them for the novice investor. Just keep in mind the risk/reward ratio of any potential stock trade you may make. You will find that Bollinger bands will help in assessing that potential risk.

David has been an independent stock and bond trader for the past twenty plus years. You can find more information about the stock market at Stock Market Predictions and How to Trade Stocks. Have great and blessed day!

Using Technical Indicators: Bollinger Bands & MACD

A good understanding of the basic tenets of technical analysis can vastly improve one's trading skills.

When using technical analysis, price is the primary tool. Simply put, "everything is already in the rate." However, technical analysis involves a bit more than simply staring at price charts hoping to find a "yellow brick road" to a bonanza payday. Along with various methods of plotting price action on charts by using bars, candlesticks, and Xs and Os on point and figure charts, market technicians also employ many technical studies that help them to delve deeper into the data. By using these studies in conjunction with their price charts, traders are able to build much stronger cases to buy, sell or remain on the sidelines than they could by simply looking at price charts alone.

Here are descriptions of some of the more widely used and time-tested studies that technicians keep in their toolboxes:

Bollinger Bands

Bollinger Bands are volatility curves used to identify extreme highs or lows in relation to price. Bollinger Bands establish trading parameters, or bands, based on the moving average of a particular instrument and a set number of standard deviations around this moving average.

For example, a trader might decide to use a 10-day moving average and 2 standard deviations to establish Bollinger Bands for a given currency. After doing so, a chart will appear with price bars capped by an upper boundary line based on price levels 2 standard deviations higher than the 10-day moving average and supported by a lower boundary line based on 2 standard deviations lower than the 10-day moving average. In the middle of these two boundary lines will be another line running somewhat close to the middle area depicting in this case, the 10-day moving average. Both the moving average and the number of standard deviations can be altered to best suit a particular currency.

Jon Bollinger, creator of Bollinger Bands recommends using a simple 20-day moving average and 2 standard deviations. Because standard deviation is a measure of volatility, Bollinger Bands are dynamic indicators that adjust themselves (widen and contract) based on the current levels of volatility in the market being studied.

When prices hit the upper or lower boundaries of a given set of Bollinger Bands, this is not necessarily an indication of an imminent reversal in a trend. It simply means that prices have moved to the upper limits of the established parameters. Therefore, traders should use another study in conjunction with Bollinger Bands to help them determine the strength of a trend.

MACD - Moving Average Convergence Divergence

MACD is a more detailed method of using moving averages to find trading signals from price charts. Developed by Gerald Appel, the MACD plots the difference between a 26-day exponential moving average and a 12-day exponential moving average. A 9-day moving average is generally used as a trigger line, meaning when the MACD crosses below this trigger it is a bearish signal and when it crosses above it, it's a bullish signal.

As with other studies, traders will look to MACD studies to provide early signals or divergences between market prices and a technical indicator. If the MACD turns positive and makes higher lows while prices are still tanking, this could be a strong buy signal.

Conversely, if the MACD makes lower highs while prices are making new highs, this could be a strong bearish divergence and a sell signal.

One final word of advice: Don't get too caught up in the mathematics involved in putting together each study. It is much more important to understand how and why studies can and should be manipulated based on the time periods and sensitivities that you determine are ideal for the currency you are trading.

These ideal levels can only be determined after applying several different parameters to each study until the charts and studies begin to reveal the "details behind the details."

About the Author

Martin Chandra
is a full-time investor. Get limited offers at
here
.

Is there a way to enlarge/stretch a Baseball Cap?

This cap is too tight even with the band in the back extended all the way. I even cut the band but the cap is still too tight.

soak in warm water then put it on your head till it's dry.

Monthly Calendar
Besides our daily menu, back by popular demand, we will be serving home cooked meals again.Tuesdays we will have baked chicken, Wednesdays, pork and kraut over mashed potatoes and on Thursdays we will be having homemade meatloaf dinner.

Thanks for visiting!