1483
« on: March 18, 2014, 10:30:19 am »
My view of the BB'S is this. Stocks that have been in a steady non volatile uptrend will bounce between the BBM and BBU. ie the middle band and the upper band. Once they get more volatile, they will bounce between the BBL and push the BBU higher.
The more volatile a stock is, the less they respect these bands and push the BBL downwards.
CML is a perfect example. For years she bounced off the BBM and as she got a bit more volatile due to the higher PE, she started to disrespect the BBM and now respects the BBL?
Another one would be OMN.