Characteristics of envelopes
Varying the Bollinger band parameters
Interpreting Bollinger bands
1. Two factors influence where an envelope should be drawn. What are they?
A. The volume associated with the security in question
B. The volatility of the security
C. The time span of the moving average from which the envelope is constructed
D. A, B, and C
E. B and C
2. This envelope for the Goldman Sachs software ETF is:
A. Really useful for pointing out potential support and resistance areas
B. Drawn too far apart to be useful on a regular and consistent basis
C. Too closely drawn because of the substantial August 2011 downside penetration
3. As described in the text, what’s the best ...