{"product_id":"v11-c09-trading-pdf","title":"V.11:9 (376-381): Trading Options With Bollinger Bands And The Dual CCI by D.W. Davies","description":"Trading Options With Bollinger Bands And The Dual CCI by D.W. Davies\u003cbr\u003e\u003cbr\u003eCombining two classic indicators, the commodity channel index (CCI) and Bollinger bands, can be a potent timing tool for options trading. This author was inspired by John Bollinger's article \"Bollinger Bands\" from the 1993 S\u0026amp;C Bonus Issue to develop a way of using the CCI to confirm Bollinger bands' trading opportunities. His technique uses a new variation of the CCI, the dual CCI. Here's how to put the technique to work.\u003cbr\u003e\u003cbr\u003eTo trade options successfully, traders need to consistently and correctly predict three elements of the\nunderlying asset: price, price direction and the amount of time it will take for price to arrive at the\nexpected price changes.\u003cbr\u003e\u003cbr\u003eBollinger bands are lines plotted around price to form a trading band or range. The bands are used to\nidentify trading opportunities where market prices are relatively overvalued or undervalued. Rather than\nproviding absolute buy and sell signals, Bollinger bands tell the trader whether prices are high or low on\na relative basis. The concept of channels or trading bands is well recognized as an aid in determining the\nprobable range of prices.\u003cbr\u003e\u003cbr\u003eThe centered channel analysis (CCA) technique tries to define cycles and predict price by drawing price\nbands around centered moving averages of price and measuring the amplitude of price cycles within the\nprice channel. The disadvantage of centered channel analysis is that it requires the trader to visualize or\nproject the channels into the future, which introduces an element of subjectivity. Because of this\nsubjectivity, the CCA is not ideally suited for technical analysis.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52133827117425,"sku":"\\V11\\C09\\TRADING.PDF","price":4.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_4c27a3cc-2001-4a04-bb69-5a7edcd96014.jpg?v=1739653450","url":"https:\/\/shop.traders.com\/products\/v11-c09-trading-pdf","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}