WMT has now broken the bottom bollinger band with the moving average set on 80 verses 20. A break of the bottom bollinger band signals extreme selling pressure and a break of the upper band signals extreme buying pressure. Usually, price returns to the interior of the bands, eventually. WMT also fell from a bearish rising wedge (RW).
When the bands widen, volatility often occurs and when they contract (squeeze), the bands may be signalling a break to the upside or the downside. Bollinger bands can tell you a lot about price without using a ton of indicators. Because Bollinger Bands measure volatility, the bands adjust automatically to changing market conditions. If the upper and lower bands are 2 standard deviations which is the norm, this means that about 95% of price moves have occurred recently are CONTAINED within these bands. The standard moving average which is the line in the middle, is a 20 day moving average.
WMT has met targets 1 for the trip down. Targets 2 are longer term and not always met. As a rule, this pattern does not perform well in a bull market but WMT has fallen a significant amount.
Not a recommendation. Hopefully WMT will find a bottom soon )o:
When the bands widen, volatility often occurs and when they contract (squeeze), the bands may be signalling a break to the upside or the downside. Bollinger bands can tell you a lot about price without using a ton of indicators. Because Bollinger Bands measure volatility, the bands adjust automatically to changing market conditions. If the upper and lower bands are 2 standard deviations which is the norm, this means that about 95% of price moves have occurred recently are CONTAINED within these bands. The standard moving average which is the line in the middle, is a 20 day moving average.
WMT has met targets 1 for the trip down. Targets 2 are longer term and not always met. As a rule, this pattern does not perform well in a bull market but WMT has fallen a significant amount.
Not a recommendation. Hopefully WMT will find a bottom soon )o:
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.