文档介绍：Stocks & Commodities V. 11:9 (376-381): Trading Options With Bollinger Bands And The i by . Davies
Trading Options With Bollinger Bands And The
I
by . Davies
Combining two classic indicators, modity channel index (CCI) and Bollinger bands, can be a
potent timing tool for options trading. STOCKS & COMMODITIES contributor . Davies was
inspired by John Bollinger's article "Bollinger Bands" from the 1993 S&C Bonus Issue to develop a way
of using I to confirm Bollinger bands' trading opportunities. His technique uses a new variation of
I, the I. Here's how to put the technique to work.
To trade options essfully, traders need to consistently and correctly predict three elements of the
underlying asset: price, price direction and the amount of time it will take for price to arrive at the
expected price changes.
Bollinger bands are lines plotted around price to form a trading band or range. The bands are used to
identify trading opportunities where market prices are relatively overvalued or undervalued. Rather than
providing absolute buy and sell signals, Bollinger bands tell the trader whether prices are high or low on
a relative basis. The concept of channels or trading bands is well recognized as an aid in determining the
probable range of prices.
The centered channel analysis (CCA) technique tries to define cycles and predict pri