Bollinger Bands and On Balance Volume

The speaker discusses two of his favorite technical indicators; the bollinger bands and on balance volume.  He mentions that it is very important to take note of divergences in on balance volume, when the stock is moving higher and the on balaThe speaker discusses two of his favorite technical indicators; the bollinger bands and on balance volume.  He mentions that it is very important to take note of divergences in on balance volume, when the stock is moving higher and the on balance volume is moving lower.  This is where the strong hands will liquidate their positions to the new money, or more inexperienced traders who chase stocks.

In the second part of this video, the speaker covers the bollinger bands.  He suggests that it is not all to useful all by itself, rather, it should be used with other technical indicators.  He mentions that when the bands tighten, you should expect a sharp move out of that consolidation.  Conversely, when the bollinger bands expand, volatility increases and one should look to either exit their position or go the opposite way.