Friday, September 28, 2012
Thursday, September 27, 2012
Wednesday, September 26, 2012
Trades for 9-26-12
As you can see in the screenshot I used the 30min chart to make my entry on the 1st trade this morning. For my 2nd trade I decided to trade it based on a break of support. Lastly, if I had held on a little longer in my 3rd trade I would have made back all the money I lost in the 2nd one.
Forex: 3 trades, 1 loss and 2 gains for a total of +1.19%
Tuesday, September 25, 2012
Monday, September 24, 2012
News schedule for this week
Nothing really big is scheduled for this week (except for bond auction), but keep your eye out for these items for some intraday moves (all times are EST):
Tuesday Sep 25th:
SNB Chairman Jordan Speaks - Tentative
Canada Retail Sales m/m - 8:30am
ECB President Draghi Speaks - 9:00am
US consumer confidence - 10:00am
Wednesday Sep 26th:
US new home sales - 10:00am
NBNZ Business Confidence - 9:00pm
Thursday Sep 27th:
UK Current Account - 4:30am
UK Final GDP q/q - 4:30am
Italian 10-y Bond Auction - Tentative
US Durable Goods Orders m/m - 8:30am
US Unemployment Claims - 8:30am
US Final GDP q/q - 8:30am
US Pending Home Sales m/m - 10:00am
Japan Unemployment Rate 7:30pm
Friday Sep 28th:
French Consumer Spending m/m - 2:45am
Canada GDP m/m - 8:30am
US Revised UoM Consumer Sentiment - 9:55am
Tuesday Sep 25th:
Wednesday Sep 26th:
Thursday Sep 27th:
Friday Sep 28th:
Bollinger Bands
Bollinger Bands, invented by a guy name John Bollinger, are one of the most popular tools available to traders (both long and short term). Their design is intended to show a relative definition of high and low, via upper and lower bands. The middle band (though not always shown) is a moving average which shows the direction of the current trend.
The working parts
The distance between the upper and lower bands show price volatility. The farther apart they are the more volatile price action is, and the opposite is true when they are close to each other. Most charting software defaults to plotting Bollinger bands with a 20 period moving average, and a 2 standard deviation. However you can adjust this setting to fit your trading style/preference.
The math
Though they can use other forms of moving averages (MA) the most common is the simple moving average. The first step is calculating the simple moving average:
The next is to calculate for the upper band:
Lastly we calculate for the lower band:
Ways of trading
There are many ways of interpreting Bollinger Bands...
1.) Some traders will buy when price is oversold (touching the lower band), and exit when price touches the middle band. The opposite is true for shorts (short when price touches the upper band, exit when it touches the middle band).
2.) Others will wait until price actually crosses above the upper band to long, and to short they will wait until price crosses below the lower band.
Just like most indicators, Bollinger Bands are often used in conjunction with other indicators. Usually the other indicator(s) will be a chart pattern, trendline, or other form of non-oscillating indicator(s).
They are also not just for any one trading instrument, they can be used to trade may things from currencies to stocks to bonds.
My personal take
My personal take on them would be to use the first mentioned way for trading during consolidation (there is no trend, price is in a range). I would use the second way for breakouts from ranges with a trading stop.
The working parts
The distance between the upper and lower bands show price volatility. The farther apart they are the more volatile price action is, and the opposite is true when they are close to each other. Most charting software defaults to plotting Bollinger bands with a 20 period moving average, and a 2 standard deviation. However you can adjust this setting to fit your trading style/preference.
The math
Though they can use other forms of moving averages (MA) the most common is the simple moving average. The first step is calculating the simple moving average:
The next is to calculate for the upper band:
Lastly we calculate for the lower band:
Ways of trading
There are many ways of interpreting Bollinger Bands...
1.) Some traders will buy when price is oversold (touching the lower band), and exit when price touches the middle band. The opposite is true for shorts (short when price touches the upper band, exit when it touches the middle band).
2.) Others will wait until price actually crosses above the upper band to long, and to short they will wait until price crosses below the lower band.
Just like most indicators, Bollinger Bands are often used in conjunction with other indicators. Usually the other indicator(s) will be a chart pattern, trendline, or other form of non-oscillating indicator(s).
They are also not just for any one trading instrument, they can be used to trade may things from currencies to stocks to bonds.
My personal take
My personal take on them would be to use the first mentioned way for trading during consolidation (there is no trend, price is in a range). I would use the second way for breakouts from ranges with a trading stop.
Friday, September 21, 2012
Thursday, September 20, 2012
Wednesday, September 19, 2012
Tuesday, September 18, 2012
Monday, September 17, 2012
Saturday, September 15, 2012
Buck hunting
It took my dad a couple shots but we got him! Now it's just a matter of time before we go back out for my elk hunt in October.
Tuesday, September 11, 2012
Trades for 9-11-12
I should have held my 2nd trade longer but I'm a bit "gun shy" after the beating I took this past month.
2 trades, 1 loss and 1 gain for a total of +5.09%
Thursday, September 6, 2012
Tuesday, September 4, 2012
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