November 22 (Tue): Nikkei 225 (Free viewing item: Oscillator is kingyo)

Good morning ☀

I’ve been unusually sleepy lately?

There are people who seriously think that you can understand the future by looking at the oscillator.

Especially beginners tend to look more at the sub-chart oscillator than the main chart screen.

Yesterday night I wrote about the oscillator.

Some of you may remember from our salon discussions?

It’s important, so I’m sharing it again within the free range?

The oscillator is like a goldfish in a fish tank.

It may have a high chance of continuing to swim as is, but it might suddenly change direction.

Near the walls, the reversal might be more likely, but it might be sticking to the wall and snapping its mouth.

What is an oscillator…

It might continue moving straight ahead, but also…

it can suddenly reverse.

This depicts past trajectories and does not indicate the future!

The reason I recommend scenario building with Bollinger Bands is that relying on the oscillator alone has its limits.

Understand the characteristics of Bollinger Bands well,

and consider what kind of price movement might occur in the future?

Let's think about multiple scenarios.

At a minimum, consider two scenarios: one where the price rises and one where it falls!

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