Thank you Joe for explaining the method of price discovery combining moving averages, and multiple levels of Bollinger Bands. I haven't understood standard deviation as well as I shoud since my survey research days - time to brush up. So we can say a 3SD is a 3Sigma event? PS You got a little ahead of yourself with "The pattern changed with the December 2025 tag of the upper BB" typo :)
Remember the Sigma terminology for the stock market is fuzzy since stocks don’t trade in classic “normal” patterns. So it’s ok to view it as usual or unusual. But yes a 3DS tag is highly unusual and a 4DS is very rare. In other words the farther the market strays from the means the greater the odds of a reversal to the means. Unless of course the whole system is broken. Which is plausible but difficult to discern in real time.
Thank you Joe for explaining the method of price discovery combining moving averages, and multiple levels of Bollinger Bands. I haven't understood standard deviation as well as I shoud since my survey research days - time to brush up. So we can say a 3SD is a 3Sigma event? PS You got a little ahead of yourself with "The pattern changed with the December 2025 tag of the upper BB" typo :)
Remember the Sigma terminology for the stock market is fuzzy since stocks don’t trade in classic “normal” patterns. So it’s ok to view it as usual or unusual. But yes a 3DS tag is highly unusual and a 4DS is very rare. In other words the farther the market strays from the means the greater the odds of a reversal to the means. Unless of course the whole system is broken. Which is plausible but difficult to discern in real time.