Comment on Indicators (Part 2)

chidambaram commented on 08 Jan 2018, 09:33 AM

Hi Sir,
1. What if the price had already CROSSED the upper/Lower BB.Still the price will revert to mean or will continue the same direction?It was explained in the chapter that if the price touches the upper/Lower band there is a possibility to revert to mean.Does the same applies if the price had CROSSED the bands too? Because in Average true range band,you have mentioned that “If the stock price PENETRATES either the upper or lower envelop, then the expectation is that the stock price will CONTINUE to move in the same direction. For example if the stock price has penetrated above the upper envelop, the expectation is that the stock will continue to move higher” and you have also said that “ATR bands can be used as an alternate to the Bollinger Band trading system”.
2. In the technical analysis module you have explained about the trend reversal candlestick pattern.Can you give some insight on trend continuation candlestick patterns and explain them in detail (in a separate chapter) as you did for trend reversal patterns?

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