Someone messaged me about using standard deviation. Which is something I traded the crap out of for years over 10 years ago. I had journals at moneytec.com and elitetrader.com way back in the day before this place came around. (Yes, I've been around a long time.) The idea is trade in the direction of the channels waiting for price to come up off the bottom of an up channel for a buy and vice versa for a sell targeting the mean as the initial target and the opposite end deviations as the aggressive targets. Done on multiple time frames can yield some extremely accurate targets and timely entries. I started a journal here using the system to show it to some peeps a while back.
Below is a rolling 3-day standard deviation forecast along with a monthly price time forecast. I bought the crap out of the EUR/USD both spot and a couple of OTM options when price was at the -1 deviation. Targets on spot were the Mean and +1 which both hit. Targets on the OTM options were 1.2440 and 1.2460 which easily hit. I also did a Put OTM at the +1 deviation expected a drop back towards the mean targeting 1.2480 which hit. Very profitable day.
http://content.screencast.com/users/...0Jan.%2025.gif
Below is a rolling 3-day standard deviation forecast along with a monthly price time forecast. I bought the crap out of the EUR/USD both spot and a couple of OTM options when price was at the -1 deviation. Targets on spot were the Mean and +1 which both hit. Targets on the OTM options were 1.2440 and 1.2460 which easily hit. I also did a Put OTM at the +1 deviation expected a drop back towards the mean targeting 1.2480 which hit. Very profitable day.
http://content.screencast.com/users/...0Jan.%2025.gif
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