John Bollinger interview
Posted 02 January 2007 - 02:12 AM
Posted 02 January 2007 - 12:56 PM
A question on your chart. The Red 3 period EMA. What is that the average of and what does the (0.65) stand for?
the 3 Day exponential average is of the NASDAQ up volume divided by the down volume. The EMA smooths out the data. The .65 refers to the scale at the left which is not important. What is important is when the EMA turns after price hits the Bollinger bands. That's where price may be turning. Of course you don't make your bet on one indicator
Thanks, very interesting. I guess in my data feed I have that for Nasdaq and S&P I've got the up/down volume and can play with that later today.
~ Johann Wolfgang Von Goethe ~