A Bandwidth Contraction and Breakout for Garmin

Bollinger Bands narrow as volatility falls and widen as volatility rises. The theory is that a volatility contraction is often followed by a volatility expansion. The directional clue depends on the break. Garmin (GRMN) has a classic contraction breakout working with a surge above the upper band on Friday. Notice that Bandwidth moved to its lowest level in over 8 months prior to this breakout.

110204grmn


Click this image for a live chart

 Previous Article Next Article