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I have read about this trading style of fading the gap, and before that I had also noticed shares which gap up at the open of the trading day do often retrace back down. What would be the main things to look out for when attempting to do this, and how do we make it a high probability trade, and...

Hi 4re. In your experience, does it matter whether the price has actually pierced through the band is is outside of it, or is just touching the band or just inside it? Reading your comments, are you saying that a series of expanding range days is also another sign that a reversal is likely to...

Excellent article, which suggests a good solution to trying to judge whether the price is going to reverse near the BB limits or carry on riding up the BBs. The article says that the occurence of an inside day price pattern when the price is near the BB limits will suggest a likely reversal...

Yes, trading is such a fluid and unstructured thing that one needs to be as clear as possible as to what is one's plan in going into a trade. As mentioned by one of the others, when we hold on, we go from being a trader to becoming an investor. Or at least from being a short term trader to an...

Unscientific though it may be, quite often that is precisely what happens as Bitstream mentioned. The heat gets too much to bear, you bail, and then surprise, price turns around and goes back up. As to doubling down, I've seen it work too many times to completely dismiss it out of hand. Yet I...

I'm sure everyone has been through this before. You get into a position, and then it moves against you but you fail to execute your stop, thinking to give it a day or two more to wait for a bounce. Few days later, the price has eroded even more seriously and you are now in a difficult position...

Yes, it is frustrating being caught in a false break, or being slaughtered in a bull or bear trap. Been there many times - no fun at all. The difficulty is in guessing as the price gets near the band, whether it will or will not pierce it. If it doesn't pierce the band, then a reversal is...

Bollinger bands are definitely useful in letting us see clearly where the lower and upper limits of price are in relation to the present price. A look at price action within the bands will show that price often goes from one band to the other, and when the price pierces the bands, it usually...

Many thanks for the replies. I learnt something new from all 3 answers from you gents. The link provided by Psytrade led to an illuminating article. I was suprised that the results in that paper were so favourable, and also was struck by the length of the time that the average run lasted using...

William O'Neil states that some of his top winning plays came from buying shares that has just broken out into new highs. I found it counter-intuitive to be buying shares at the extreme highs, but neverthelss this technique is advocated by many experts. I am just wondering what is the...

I have been working with stochastics for a short time, but they do seem to be a valuable indicator. All indicators are based on price, so it is just a different way of presenting the same data, however this different view clarifies the data somewhat compared to looking only ay price charts...