When stock starts to become very volatile, it is depicted in chart by actual stock price "hugging" or staying very close to either upper or lower Bollinger Bands, with Bands widening substantially. The wider Bands are, more volatile price is, and more likely price will fall back towards moving average.

When actual stock price moves away from Bands back towards moving average, it can be taken as a signal that price trend has slowed, and will move back towards moving average. However, it is common for price to bounce off Bands a second time before a confirmed move towards moving average.

As usual, and for Bollinger Band theory in particular, it should be noted that individual indicators should not be used on their own, but rather with one or two additional indicators of different types, in order to confirm any signals and prevent false alarms.

For more information on bollinger bands, visit:

http://www.option-trading-guide.com/bollingerbands.html

When you have a bad debt, it makes a big hit on your credit history. This can be a big problem, especially if you need to get a credit card or a loan. In fact, credit history can effect pretty much anything you do in financial world, including mortgages, buying a car, and being able to take out a much needed loan. Therefore, you should do whatever you can to make sure that you'll be able to pay off debts you have.

To prevent bad debt, you should first minimize number of debts you incur to begin with. For instance, if you can possibly avoid buying something, then you should wait until after you've saved money for it, instead of buying on credit. If you already have a lot of debt, then you should look at some of debt solutions, for instance, debt consolidation.