Surfing and Trading have a lot in common. In order for decent size, rideable waves to arrive at the shore, a swell must be in the outer seas, only then gives surfers a guarantee of finding good waves at the beach. Similarly in order for price to sustain a decent move worth riding, volume must…
ZScore Trading System
This post brings an end to my series on statistics in trading. If you are reading my blog for the first time, I highly recommend that you first read my posts about Standard Deviations, Bollinger Bands & Natural Distribution The ZScore is the tool that brings all the statistic elements together, especially if we can…
Normal Distribution
On my About page I mentioned how my trading performance improved dramatically after discovering Brian Twomey on Twitter. Brian can hit targets like no one else. No indicators, no charts. All with pen, paper and a $5 calculator! How does he do it? A deep understanding of statistics and Interest Rates. Brian has written two…
Bollinger Bands
On our previous post we learned about the importance of understanding the Standard Deviation indicator and how it can be used to spot ranges and trends as well as momentum or trend fuel. Bollinger Bands are a very popular indicator / trading system that is entirely based on the premises of Standard Deviation. As you…
Standard Deviation
Every trader has profitability as a common objective. Without making profit we cannot stay in the game. How do we determine which instruments to trade and how much profit could we take within a traded instrument are questions every trader should ask themselves before a trade session begins. The Standard Deviation is one particular concept/tool…