Using Bollinger Bands Indicator with HSY

Created by John Bollinger, this three lines allow us to visualize a “security” zone, generated by the average of closing prices. Some traders believe that if the prices move to the upper line, means that those shares are overbought. If the line of prices move to the lower line, then the shares are oversold. Using Bollinger bands properly isn’t easy as that, why? Well, this indicator is supposed to be use as a trading system considering 22 rules, as his creator indicated.

As we can see, as the lines get squeezed, the shares have low volatility. As the bands move apart and the area between them is bigger, volatility increase.
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