Investment information content in Bollinger Bands?

Camillo Lento, Nikola Gradojević, Christopher S. Wright

Applied Financial Economics Letters · 2007 · 73 citations · 8 references

Concepts

Abstract

This article tests the profitability of Bollinger Bands (BB) technical indicators. It is found that, after adjusting for transaction costs, the BB are consistently unable to earn profits in excess of the buy-and-hold trading strategy. However, the profitability is improved using a contrarian's approach.

References

8