Bollinger Band Breakouts --
stocks making extreme moves
based on Daily data
Every week we review all the stocks listed on the NYSE, AMEX and NASDAQ, over 6000 securities in all. As a byproduct of this process we generate buy and sell signals based on Bollinger Bands. The signals on this report are based on Daily data.
Bollinger Bands are a classic indicator that uses a simple moving average of 20 periods, along with plots of upper and lower bands that are 2 standard deviations away from the basis line. These bands help visualize price volatility and trend based on where the price is, in relation to the bands.
This report is focused on the Bollinger Band Breakout Strategy. We look for one of the following two situations to occur:
- Downside Breakouts
We look for stocks that have broken down at least 3% below their lower Bollinger Band. This can be considered a bearish trend confirmation.
- Upside Breakouts
We look for stocks that have broken at least 3% above their upper Bollinger Band. This can be considered a bullish trend confirmation.
Note that you may want to use another indicator to confirm the direction of the trend indicated by the Bollinger Band Breakout. Traders often use either RSI, MACD, On-Balance Volume (OBV) or a 50-day Moving Average for this purpose.
Scroll down to review this week's breakouts based on Daily data in a tabular format.