As you can see the stock broke out from what’s known as a “volatility squeeze” to the upside in a big way. Investors who got in at $1.80 and are still holding the stock saw a huge return on their money in a matter of a days.
The important thing to note about the Bollinger bands is that he nor the tool proclaim to know which way a stock is going to move (IE: an increase in volatility) but they do believe that it is going to happen at some point which when you think of it, isn’t really a tough prediction to make. But see for yourselves how over and over the tool can help get you into a stock that is about to experience a powerful move or conversely keep you away from a stock until it consolidates.
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