The chart above shows a nice bollinger band breakout on a weekly ERG chart. I am not in this trade and this is not an active system. I find this a more fruitful aproach than the traditional OB/ OS strategy commonly touted in trading books. I use this strategy to trigger buys in systems I trade. Combined with volume, momentum and a suitable exit it works quite well.
To quote from the Bollinger site;
"Price can, and does, walk up the upper Bollinger Band and down the lower Bollinger Band."
"Closes outside the Bollinger Bands can be continuation signals, not reversal signals--as is demonstrated by the use of Bollinger Bands in some very successful volatility-breakout systems."
Stevo
