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True, but 95% probability is pretty good when you're playing a risky game.

I've read Harry's posts. Mad genius excuses a lot of shortcomings - including the occasional grammatical slip. No offence intended Harry.

Apologies for the delayed response; I had to attend to family business here. The bands don't have to be expandable to infinity to be valid as approximate limits to price; they track the probability of a trade occurring within them with 95% confidence. As the trader reviews the BB's he/she...

According to COLLINS. "Formulary" is also valid.

"Price does not stay within the BB's for any direct psychological reason other than that the trading population doesn't consistently make insane trades." There's a contradiction here? Were we seriously considering the probability that the trading population consistently makes insane...

I wasn't applying your metaphor in the samr context - just borrowing your rather effective imagery. And yes, of course, ultimately BB's can't exist without price, but BB's measure a specific manifestation of price - volatility - and 95% of the time price is trapped between the BB walls...

Your argument is based on the supposition that the USD is merely normalizing; I believe the good Dr. Z was making reference to "an extending dollar decline". If the Fed inadvertently overshoots its target dollar range the results could be a cascading catastrophe. It's all a house of...

OK - but we can't all live on the farm.

BB's don't track either price or a set of prices; they track volatility, which is derived from a set of prices. BB's are only an indirect function of price. Re. your subsequent post - using your metaphor to support my POV: The "person" is the instant price; the "sphere" is the BB's -...

Actually, the bands don't follow "the price" per se; they follow the volatility which in turn is calculated from a set of most recent trades. True, the BB's reflect the volatility as at the moment of most recent trade, but no single normal trade is likely to affect the bands to a...

The stock prices do occasionally peek through the bands, even in subdued markets, but, as you indicate, not often, and not by much. This is because Bollinger Bands are dynamic - they are continually adjusting to fluctuations in volatility. As volatility increases the bands widen so that the...

In most urban and suburban areas the housing prices are very high (the RE 'Bubble'). The low interest rates may make it easy to commit to a house, but hanging on to that pricey house when the interest rates reverse with an improving economy or, conversely, when the housing prices and earnings...

Once upon a time in America anybody who had any job could afford a house; now home ownership requires 2 overtime-supplemented incomes!

Mixed bag. It's a trade disadvantage and a disadvantage re. debt held by foreigners, but an advantage re. attracting foreign investment $$. I assume you're talking about the U.S.$ which at this time the U.S. wants to passively devalue in order to 'normalize' a massive trade imbalance and a...

stockscores.com Check out some of those penny golds charts. e.g. T.BDY, T.QRL, T.JON . All good examples of easy-to-read-charts but all too pricey here. V.BZA ( "V" for TSX Venture ) has a good chart; they recently found gold in Arizona and got $11,000,000.00 financing. These...

M3 dipped significantly in September in defiance of easy credit and about-as-low-as -possible rates. Could we yet sink into the morass of deflation? With all these trillions of new dollars pumped into the economy over the past few years, is some deadly form of price-inflation lurking around...

However, a computer could easily be programmed to trade like a "disciplined" Technical Analyst; it's all math and pattern recognition...and the computer could effect TA almost instantaneously. Time would be its big advantage in this scenario. Scope too: a computer could track thousands of...

I came back to edit my entry but finished too late. I admit that I'm out of my depth on this one. It's a monster topic and I just don't have the programming background to even guess at how it's done, but level 2000 hand-helds have been with us for 20 years, so it can't be all that...

True, the number of possible complete games is staggering - but the number of legal/logical responses to any given distribution of the pieces is limited. For instance, the possible responses to any opening play is only 20 ( 1 of 8 pawns up one/two squares or a knight out ). If we assume...

We all know that programmed trading has been going on for many years (remember the crash of '87?) but if there were software out there that is a consistent winner it would be all over the market. Sure, computers can handle simple trading techniques like arbitrage and momentum plays, but make...