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Showing results for tags 'technical analysis'.
Found 5 results
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The crossover is between the middle band and price. The default setting for Bollinger Bands is two standard deviations. When this default is applied, three bands appear. The upper and lower bands are the same distance from the middle band, because their application of standard deviation...
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If you – like so many options traders – time entry and exit on a series of signals, then you already know that false signals appear. Confusing reversal with retracement, for example, is common. And even the strongest signals may be only coincidences of price pattern. Following are some suggestions f...
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Island Clusters as Strong Reversals
Michael C. Thomsett posted a article in SteadyOptions Trading Blog
The attributes are easily spotted on a chart, but it does not appear often. It consists of three specific parts. First, price gaps away from the current trading range, either above or below. The gap itself is significant, but it can mean may things: reversal, continuation, or just momentary volatili... -
Powerful Channel Signal – Combining Bollinger and T-line
Michael C. Thomsett posted a article in SteadyOptions Trading Blog
To review: Bollinger Bands has three averages. The middle band is a 20-period simple moving average. The upper band and lower band are the second and third parts. Each are two standard deviations away from the middle band. This is a visual summary of historical volatility. Price generally is not lik... -
Great reversal signal – 50 MA with 8 EMA
Michael C. Thomsett posted a article in SteadyOptions Trading Blog
This assumes your timing is made more reliable by selecting long or short positions in close proximity to resistance and support, and that the moneyness of the option also is considered. For short positions, focus on high volatility and very short time to expiration. For long positions, seek low vol...