And when you draw enough of them you finally end up with a conquering lion of Judah. Jah rastafari
like when the bands make a new high/low, i make a new line using that. when price touches one of the lines, i check to see it's current volatility. if it's low, then im not interested. however, if it's high, then im more likely to go for a mean reversal than if it just hit the band in isolation. using a ma of some kind can be useful for a price target, or simply a % from current price. (if it's a 3% day, then i may only target 1% since 2% days are more common than 3% days)
weirdly enough, it also provides a price target for trend trading, as well. when the market is illiquid, indicating future volatility, it's going to be easier for someone to move price, as there's not much support/resistance. however, they will eventually run into S/R after moving the market enough, causing certain players to react to their changing P/L for the day, but also other players who want to corner the current market mover and punish him for committing too much capital while the market, in this very case, stays illiquid. (leading price to be moved even easier than before since essentially all s/r has been taken out in the between)
i doubt any of this makes sense
No it does not.
It causes a phase imbalance in the quantitative analysis in which the angles of the buy and sell lines aren't 180 degrees out of phase as is neccisary when using this strategy.
In all seriousness though,
Technicals have their place but if you want to make real forex money and not just fluctuate between +50% -50% account... you can't use technicals to pick your trades. Just where to enter.
You've got to account for not just technical risk, but also fundamental risk. Eg. If I see a nice heads and shoulders pattern on crude oil now indicating it's going further down.. I WILL NOT SHORT INTO IT... because putins been walking around saying they've struck a deal with the saudis to cut production and increase the price.
The hardest thing in the world to do is look at pic related without laughing