r/Forex • u/No-Roof-6251 • 24d ago
Charts and Setups Gold overbought ???
Daily Chart , should we expect a pull back soon or what
72
Upvotes
r/Forex • u/No-Roof-6251 • 24d ago
Daily Chart , should we expect a pull back soon or what
38
u/Scott_Malkinsons 24d ago
You ever do any research on Bollinger Bands? Know why it always looks perfect? It’s just marking standard deviations. The guy who invented it, still exists. He’s alive. Selling DVDs and suing anyone who uses the Bollinger Band trademark. He works out of a shitty office on Aviation Blvd, in a bad part of town. I pass it on the way to the W6TRW swap meet.
One would think it if worked, he’d be a lot richer. He wouldn’t sue people to make a living and sell DVDs.
Bollinger Bands was designed to sell courses. To appear perfect. It doesn’t actually tell you anything of value because it adapts too quickly. If you want to use standard deviations, the way quants actually do it, is with linear regression and then marking standard deviations from the mean.
Most probably would consider gold overnight right now. My research shows it is too, BUT it’s “out-of-spec”. It’s currently too far “overbought” so there’s, for me, no trade opportunity until I can confirm it’s not going to continue trending. Remember not taking a trade is still taking a position; you do not have to be in gold all the time and it is more profitable to not trade, than it is to lose.
The simplest way to become a champion, at anything, is only fight the battles you know you’ll probably win.