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Poll: How will the present Bollinger Band "squeeze" resolve itself


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Poll: Bollinger Band "squeeze"

How will price resolve? (see post for description)

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#1 unosuke

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Posted 30 December 2008 - 07:00 PM

I don't claim expertise on Bollinger Bands. I've seen "the squeeze" referenced a number of times on this forum, where the bands contract due to a sideways move. Once the move is resolved directionally and the Bands flare, the price move should be explosive and substantial - at least that's what I understand.

However, I've read about head-fakes where price appears to break in one direction only to reverse, making its true breakout of "the squeeze" in the opposite direction.

So, assuming one believes the above, that leaves 4 possible conclusions:

1) One clean break topside
2) One clean break downtown
3) Head-fake downtown, followed by clean break topside
4) Head-fake topside, followed by clean break downtown


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#2 inamosa

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Posted 30 December 2008 - 10:58 PM

I went with Head-fake topside, followed by clean break downtown Makes sense to me...lots of bullishness right now and everyone thinking we're about to see a rally...a head fake to the topside should lure plenty of ppl in and then...wham...a clean break down We'll likely know next week
"Our job is not to predict where the market will go, but to interpret daily price and volume action to ascertain the facts of the current environment and make decisions based on that interpretation."
-Scott O'Neil (son of William O'Neil), Portfolio Manager at O’Neil Data Systems, when asked where the Dow would go in the coming months