Stock market psychology cycle

By: Alex Ey Date: 01.06.2017

Swing trading the stock market using Bollinger Bands can be very effective. But most people do it wrong. One of the most common misconceptions is to buy when a stock hits the lower Bollinger Band and sell when it hits the upper Bollinger Band. Welcome to this video on Swing trading the stock market using Bollinger Bands. And today I am going to show you very very simple technique. And I like this. So here is the point. So we are looking for exhaustion. And here is what it is.

The real body of the candle gets outside of the Bollinger band. So in this case it gets below the lower Bollinger band. Now I like to have the real body. That means that the entire green or in this case the entire red, here we have 2 bars, outside of the Bollinger band.

Now this is not a trend trade.

This is a quick little scalp trade. Reversion to the mean type of thing. Okay, and eventually it does. It gets over to the 15 EMA over there.

So here again we get another one. Alright, and there you go. Oops I think the red one was too. And then it comes back down. So sometimes it will revert back to that as well. By the way, one way to use this, you see the moves are not real big normally. These are the one that I use, 15 EMA and the 50 SMA. And one way I like to trade this is for swing trading as the title indicates.

So this is a great thing if you want to scan for markets. Set up your scanner to look for markets where basically what you could do is the open and close is greater than, you know the Bollinger band at that setting.

Okay here is another one. So there we go, the entire real body of the candle is below the Bollinger band. And what to do, retrace this back to the mean. And then after that, it just kind of go sideways, it goes choppy. I like to do this with options by the way.

Stock Market Psychology

Very short term, little kind of scalp trades if you will. Just scrolling through so we are not trade 3: This red bar is entirely below the Bollinger band. And that kind of hesitates a little bit, but it gets up back to 15 EMA, sure enough it does. So that one works. Here is one I see good, but actually I do like this. So here is one that did not work, right.

This one here, we see the entire real body is below the lower Bollinger band. And that one did not work for our purposes. Does not revert back to the mean. Okay, so yeah, there we go. Alright, here we go again. And that one worked out real nice. And so that worked out real good. Might be missing some here because I am just going through real quickly. Oh, actually see one over there.

Now that actually prompts me to, these last 2 examples prompts me to remind you of something else. So support resistance cycles, trend, candlestick patterns. Here is another big one. So that one again, completely is outside of Bollinger bands, reverts exactly back to the 15 EMA.

So this is a little golden nugget for you really. I find this to be very effective. Actually yeah, funny I just said that. It starts to break out of consolidation. We get a little when there, and sure enough, boom right back to the 15 EMA. Remember this is just a scalp trade. They are normally not that. And that is all. Well there might be a little one right there too. Like I say, I would apply any other knowledge that you know.

But way I like to use this is to scan for these. Because I am not a programmer. Also I am giving away one of my favorite trend trading strategies that work today. Just fill out the yellow form at the top of the sidebar on the right. For another excellent trading video, simply click here: Go here to Subscribe to my YouTube Channel for notifications when my newest free videos are released: Welcome to this video on Swing trading stock market.

Another great setup with Bollinger bands. This is part 2 of a little mini-series. If you want to see part 1, just scroll up on this page to find it.

But you can watch this one first. They are not in any particular order. They are just 2 different setups using Bollinger bands for swing trading. Actually you can use it for day trading as well, end of the markets as well.

But this particularly works well with the stock market for swing trading. So using Bollinger bands with setting of 2 and So 14 period and 2 standard deviation. You can try with other settings as well. And this is a really good setup.

stock market psychology cycle

Now the last one that we looked at, just as a little reminder, the previous one was where you get a real body that occurs outside of the Bollinger band. Either with the upper Bollinger band or the lower Bollinger band. Generally in this kind of situation, it will just be a little scalp trade.

So the market goes up and the price touches the upper Bollinger band. Now here is the key. After it does that, then you get a higher high that does not touch the upper Bollinger band, and then comes back down. So both of these are different signals. This one comes down, this by the way is the 15 Exponential Moving Average, this black line.

And then this moving average here, this green and red one that is the 50 period simple uk stock market ticker average.

And Bollinger bands can be used couple of different ways. Number 1 is to measure volatility. But they can also be used to measure strength, and even trend. So they have multiple uses if you know how to read them.

Now the key in this one is that we are also using other things along with it.

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And if you like that, methode pour trader les options binaires free to email me at Barry TopDogTrading. Actually for my YouTube subscribers, I offer this for free along with the free tutorial and how to trade it.

So feel free to send me an email. Make sure you subscribe because it is for YouTube subscribers. And I do sell this but a few guys get it for free. And then the 3 rd thing we want to look at is where are we in the trend? So here you see right away 3: By the way obviously these are not Elliot waves. Elliot waves spx binary options only go up to 5.

Now the significance of that is that it means we are already in an extended trend. The average trend, the way I read waves is 5 waves.

Essentially fade the trend. And so this one we would expect a deeper retrace if not a trend reversal. But it is expanded, extended trend so after that as accounting treatment of incentive stock options can see what happens is the market basically just goes sideways for a few months.

February, March, April and into early May. So that essentially ends that trend. So here is another example of the stock marketing swing trading this. And with the Bollinger bands. So again I like to put this in the context of the trend. Very important that you understand that really the bottom line of what this signal is telling you is that there is a high probability final cycle high.

Then you need to look at where you are in the trend, as far as price structure goes, as to how far you expect the market to retrace from that. So here we have an impulse move up.

Now before I go to 3, we get an impulse move up from this cycle low to that cycle high, now it touches the upper Bollinger band here. Then the market makes a higher high. Price action makes a higher high that does not touch the upper Bollinger band. So then we would expect, okay that is going to be the final cycle high before we put in a cycle low.

That is the real signal that this is giving you. Then for any other signals you need to look at other components. Things like that to scottrade options tools out what you are expecting to see profit will be. But at the very least I like to see a comeback to the 15 EMA. Now if you want trade options in this, you could buy a put.

Now again the average wave is 5 in a trend. Market comes back up, hits the upper Bollinger band. Rides it up, rides it up. Now look, it hits the Bollinger band here.

Then we make another, we make higher 1000 account forex managed, much higher high after touching the Bollinger band. But where shorten links earn money the Bollinger band?

Stock market psychology cycle difference with this one is we are at wave 5, which is an average trend. But last contract, whatever markets you are trading. But I find that it works great, and I like to do it especially with options for swing trading personally.

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stock market psychology cycle

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stock market psychology cycle

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