The primary tool that investors use to predict the market’s direction is called the Bollinger Bands, or by short-cutting the terms B and B2. In the Bollinger Bands, we measure the probability of a movement in the market that is above or below the 20 point average of the last 52 weeks of prices. The higher the Bollinger Bands, the more strongly the market is likely to move. With this tool in hand, we can use this as a tool to determine our best time to buy a market, or vice versa.
When I talk about the Bollinger Bands, I am not talking about the price (or the dollar value) of the market. I am talking about the probability that a move below the 22 week moving average is likely to occur. This will tell you the order of magnitude (or odds) that the market is moving in the direction of the previous price.
For example, on November 23 2016, our price was a little below the 22 week moving average. This meant that the probability that our last move would be a move to the downside was slightly less. By looking at the Bollinger Bands, the probability that the move would take place was about 40%. On December 4, 2016, we moved further below the 16 week moving average. Even on December 2, 2016, the last time these pairs traded above this price range, it still fell below the Bollinger Bands. Our probability of a sell below the 16 week moving average was only 35%.
What types of events could we forecast when going from a B2 to a B2/1 position?
Looking at this chart, what can we see, and what can we not see?
It is clear that from the B2 position, the market has moved much higher than where the Bollinger Bands were. With a higher probability of a sell below the Bollinger Bands, we are much better off buying.
What type of events can we watch when going from a B2 to a B1 position?
The chart above was taken from the same event as the ones above, but from a B1 position. Our best time to buy a trade is near the 20 week moving average and we are better off buying that close. This indicates that the market may very easily move beyond where the 20 week moving average stood. So now we can ask for a sell below this price range if the market seems to be moving higher. This could indicate that there is a
forex swing trading strategy a simple one, swing trading software signals coupons discounts, best online stock trading courses, swing trading forex dashboard indicator free download, swing trading vs day trading which is more profitable goats screaming