Low volume means there is not much current interest in a stock, and this is really the best time to buy it as long as you are buying a strong news sensitive stock. The volume will eventually pick up with a strong stock whereas volume may always be low on a poor stock.
Narrow Bollinger bands mean a stock will soon break out either in the up direction or down. Again, if you are looking at a strong stock, that is the time to buy it for whatever direction you anticipate it will go.
For example, TVIX, the double VIX volatility ETF, was selling for around $20 per share in the first part of June 2011. It also had narrow Bollinger bands at the time along with low volume. It was the perfect setup for a strong stock. It took almost two months before TVIX really started rising significantly, but it began making a moon shot around the first part of August when Congress was so indecisive about raising the debt ceiling. This was a very powerful volatile news driven situation. TVIX made it all the way to $100 per share by the first trading day of October.
Since it is difficult to pick an exact top, the best thing to do is to take profits when you have made three or four times your money and while the stock price is still high. TVIX spent several days in the $80 and $90 range. That would have been a great time to sell. You would have made 400% on your money in four months. A lot of people won't make 400% on their money in a lifetime. It is well worth the patience to wait for the right time to buy and then sell while you still have a great profit. If you can make 200% or more for your money in just a few months out of each year, you could sit on your hands the rest of the time and enjoy life!
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