Just like TXMD, I like Lexicon too. BB is an indicator that even though I don't rely on, but together with RSI -and some other factors and market conditions- it's not a bad idea to consider looking at it. The vertical lines represent the buy and sell moments on this chart, please note where the price was at those points on the Bollinger Band and what value we saw on the RSI. (BTW, I bought at $1.26)
So, not a rule oc, (but interesting data we have in front of us) that where with the green fat arrows I was pointing to are the prices at the lower B.band + "oversold" RSI levels, these usually result in a breakout especially if the band is contracted (called the squeeze) and the other way around similarly, when price was at the higher band + "overbought" RSI more likely than not is followed by a correction (price drop). Just an observation of a few decades.
*sorry about the typos
So, not a rule oc, (but interesting data we have in front of us) that where with the green fat arrows I was pointing to are the prices at the lower B.band + "oversold" RSI levels, these usually result in a breakout especially if the band is contracted (called the squeeze) and the other way around similarly, when price was at the higher band + "overbought" RSI more likely than not is followed by a correction (price drop). Just an observation of a few decades.
*sorry about the typos
