Inside this article you will find companies that show a potential Buy signals according to a well-known indicator that is based on the volatility of a financial instrument: Bollinger Bands.
What are Bollinger bands?
Bollinger Bands are calculated by applying a volatility coefficient (2x Standard Deviation) to the 10-day (or 20-day) simple moving average of a financial instrument.
The price chart displays two bands around the 10-day (or 20-day) simple moving average and potential buy signals are generated based on contact with them.
Bollinger Bands – types of signals
Bollinger Bands mainly provide 3 types of buy signals within an underlying positive trend:
- The price rises above the upper band after a squeeze (moment of low volatility) to continue the positive trend
- The price exceeds the lower band downwards and immediately afterwards recovers overcoming it upwards to follow the positive trend
- The price rebounds on the lower band and tries to continue the positive trend
Below the companies that showed a potential buy signal according to 1 (or all 3) type of events just described.
None of the patterns below guarantee success because there may be false buy signals. The purpose of this analysis is purely informative.
S&P Global Inc (SPGI)
Skyworks Solutions Inc (SWKS)
Las Vegas Sands Corp (LVS)
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This analysis shows the buy signals from the Bollinger Bands indicator. If you are interested in the other types of chart patterns click here.
If you are interested in a overall analysis of companies taking into account different types of data (including business growth, analysts expectations and transactions by Hedge Funds / Insiders), summarizing all information in a score, I’ m waiting for you here for my Score-Card analysis.
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.