Binance Coin Triple 4-5 StDev Events
BNBUSD Triple 4-5 STDEV events
Binance Coin (BNB) experienced Triple 4-5 STDEV events trading on the USD pair BNBUSD on the Weekly TimeFrame .
Notice how it’s basically gone past the 4 STDEV and nearly touched the 5 STDEV, now for the third week in a row.
Hitting a 5 stdev is usually a very unlikely event and often leads to a reversion to the mean.
Hitting above the 4 STDEV, near the 5 STDEV, in the same direction (in this case to the upside) 3 weeks in a row … that’s … extremely unlikely. And yet, it was a clearly foreseeable event given these and other volatility indicator readings.
Of course many people who don’t know how statistics and probabilities work, thought BNB’s moves are face melting, or some other nonsense.
Meanwhile, people trading volatility properly, for example people here on tradingview that use the volatility indicators published by @balipour , pig and their crew, saw this as just another event clearly visualized by the indicators.
The beauty of these indicators, ie: the Expected Moves and the Probability Cones seen in this chart, is that you really do not have to be a math genius to use them properly and consistently trade profitably. The folks who made the tools, built them all with proper maths, so that you don’t have to worry about making all the calculations. They save you all that time and effort. This is incredibly useful when scalping low TFs.
In the community of people who use them, the traders who learn how to read them, consistently report having profitable trades and far better performance with these indicators than with anything else they’ve ever tried. Of course this comes as no surprise to anyone who understands that trading volatility means trading by the numbers. Because trading is far more science than art.
This article first appeared on TradingView and was edited and republished on Volatility Wolf with permission from the author.