Do “modified Bollinger Bands” (mBB) Work In Other Markets?

By Lawrence G. McMillan

We have traditionally used the mBB system only with respect to the $SPX.  It has worked well there, as we have had some very successful mBB signals this year: a buy signal in February, a sell signal in September, a buy signal in October, and now another sell signal recently.  The only incorrect signal this year was a sell signal in June ($SPX eventually fell in late July, but no reasonable trader would have still been holding a short that was established in early June).  These signals are marked on the $SPX chart below.

We first formalized this system in an earlier article in this newsletter (Volume 22, No. 15), but we have only applied it to $SPX.  Some subscribers have asked if it works on other markets, so we’ve taken a preliminary look at some of the major ones.

In Gold, for example, we ran the last two years of mBB signals... 

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