Goldtent TA Paradise

BOLLINGER SCHMOLINGER

1. Farmer says:

   March 18, 2023 - 9:44 pm at 9:44 pm

   Well you have made a fair case Fully. In the first instance though that was a mere 3 bar move before price hit the upper Bollinger and would not have alarmed too many people. In the second case there was a brief single candle pullback before the continuation. Bollingers are calculated based on simple MOVING averages. So they recalculate and plot a new number each day to define the standard deviation upper and lower bands. There is a volatility function involved as well so its not always so simple and obvious to read. Thus my comment that three standard deviations “virtually always” (but not necessarily always), result in reversals. Indeed the gap implies price will go a little higher. Be that as it may, the price is still stretched and caution should be exercised.

   Or you can just buy with abandon! LOL.
   But don’t forget, 85% of traders lose money trading on gut instincts rather of the math behind the chart movements.

   • Fullgoldcrown says:

     March 18, 2023 - 10:25 pm at 10:25 pm

     I am Proudly in the 85% of Emotional Traders….I may lose most of the time but when I win I go Nuckin Futz

     🙂

     • Farmer says:

       March 19, 2023 - 4:13 am at 4:13 am

       LOL….good for you Fully. I totally understand. I love gold too. I just hate buying interim tops. The weekly chart says gold is going over 2000 dollars so that’s not in doubt. I was just commenting that it will likely pull back first. We won’t have to wait long to find out. By Monday we will know.