When Bollinger Bands Snapped
September 11, 2014 - Big Ideas, Technical Trading
Do financial markets adapt to widespread use of an indicator, such as Bollinger Bands, thereby extinguishing its informativeness? In the August 2014 version of their paper entitled “Popularity versus Profitability: Evidence from Bollinger Bands”, Jiali Fang, Ben Jacobsen and Yafeng Qin investigate the effectiveness of Bollinger Bands as a stock market trading signal before and after its introduction in 1983. They focus… Keep Reading