This is the last article in a four part series on band trading. In the previous articles, we reviewed the importance of trends for bands and a few types of price bands. In this article, we will study some guidelines for band based trading systems which, regardless of the band type, are limited and similar. […]
Why band trading works: Part 4
Emini weekend update: December 20, 2014:
Bull trend reversal after a breakout pullback on the daily chart
Monthly S&P500 Emini candle chart: Doji outside bar The monthly Emini candle closes in two weeks, and it is currently an outside doji candle that is testing the top of the bull trend channel. The monthly S&P500 Emini chart continues to be overbought and it is at the top of the bull trend channel, but […]
Intraday market update, December 19, 2014:
double top on the daily candle chart
Posted 7:05 a.m. Yesterday ended with consecutive buy climaxes above a bull channel, and today opened with a big bear reversal bar that was far above the moving average and the top of the channel. This was a reasonable short for a test down to the bottom of the channel, but with yesterday’s rally being […]
Intraday market update, December 18, 2014:
bull trend reversal after a test of support
Posted 7:08 a.m. The Emini had a big gap up and the first bar was a strong bear bar, but the 2nd bar was a strong bull bar with weak follow-through. This is a trading range open. The Emini has been working up from that 2nd bar and reached a new high. If the bulls […]
Intraday market update, December 17, 2014:
FOMC report
Posted 7:00 a.m. The Emini had a small gap above the tight bear channel and then rallied for several bars. The bears want the rally to be another lower high and for it to become to an opening reversal that leads to a push below yesterday’s low. The bulls want to get above and hold […]
Intraday market update, December 16, 2014:
60 minute wedge bull flag
Posted 7:05 a.m. The Emini is searching for a bottom and it probably will soon reverse up from a 60 minute wedge bull flag. However, there are still targets below and they may have to be reached before there will be a 60 minute rally. The Emini reversed up from below yesterday’s low and it […]
Intraday market update, December 15, 2014:
probable major trend reversal
Posted 7:15 a.m. The market had a big gap up, but then tested the bottom of yesterday’s trading range. The trading for the first 30 minutes was tight trading range price action. The big gap up after yesterday’s big selloff increases the chances that this early selloff will become a bear leg in a trading […]
Why Band Trading Works: Part 3
Superiority of Standard Error Bands
In the previous two parts of this series we analyzed price trends, explored why band trading works, and looked at how some of the popular bands are built and used. This part looks at Standard Error (SE) Bands and why it is considered a superior band. I will not get into mathematical details in favor […]
Emini weekend update: December 13, 2014:
bear trend on the 60 minute chart
Monthly S&P500 Emini candle chart: Failed bull breakout on the monthly chart, and there is now a bear trend on the 60 minute chart The bear candle on the monthly chart is close to totally reversing November’s rally. Although this week’s selling was enough to create a bear trend on the 60 minute chart, the […]
Intraday market update, December 12, 2014:
double top bear flag
Initially posted 6:15 a.m., and then updated 7:05 a.m. The Emini gapped below the neckline of the 3 day double top bear flag, but reversed up sharply. However, yesterday’s selloff was steep and this increases the chances that the Emini will go sideways for many bars after the initial rally, rather than straight up to […]
