Friday, December 31, 2004 11:49:23 AM
Contracting bands warn that the market is about to trend: the bands first converge into a narrow neck, followed by a sharp price movement. The first breakout is often a false move, preceding a strong trend in the opposite direction. A contracting range [C] is evident in June 1998: the bands converge to a width of $2, followed by a breakout in July to a new high.
JUST TO SHOW WHAT THAT MEANS. HERE'S A CHART EXPLAINING IT.
Look at the contracting bands with QBID. Getting very narrow and todays low may have indicated that false move below.
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JUST TO SHOW WHAT THAT MEANS. HERE'S A CHART EXPLAINING IT.
Look at the contracting bands with QBID. Getting very narrow and todays low may have indicated that false move below.
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