Lost in the heap: Sir Farmer’s post on BB width
Sir Farmer,
As a continuous learner, I’d consider your post as the best today.
I have looked at, and used a shrinking BB width as facilitating an entry or cost average decision.
In juniors, this width indicator can be dead as a pancake for YEARS.
E.g. EQMEF: six months of pancaking, March 2017 to September 2017, before an explosion in the BB width.
Who knew when the BB width would explode again? It is still pancaking from September 2019 to date, on a long term chart.
The minisculest width expansion on the long term chart can only be seen on a much shorter time frame chart.
The bands were most squeezed near end of October 2022, beginning of November 2022.
When they started expanding, a 5-6x move began.
I got lucky.
GL
https://stockcharts.com/h-sc/ui
Thanks Gold Learner. I agree time periods matter when using that indicator. For me its mostly hourly and 15 minute charts where I find it most useful. Never tried on a monthly since the line would get lost in the time period and probably not help too much.