Our containment bands are a dual purpose tool. It allows traders on short time frame 2 minute or 5 min charts to see where longer term 15 min, 30 min or 60 min moving averages are. Above these focus on buys and below sells. In this way its a great trend filter. We also go back 20 days and find the MAXIMUM volatility and plot this. Most of the time markets stall or reverse at this level and this can be used as profit targets, to tighten trailing stops and also makes a great zone to look for counter trend trades.
Visibility: 1967
Duration: 5m 59s
Rating: 4